The S&P/ASX 200 (Index: ^AXJO)(ASX: XJO) is expected to open lower on Wednesday, following overnight selloffs in the BHP Billiton Limited (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price.
Here's a quick recap of global markets:
- FTSE 100 (UK): down 2.5%
- DAX (Germany): down 0.9%
- CAC 40 (France): down 1.6%
- Dow Jones (USA): down 0.5%
- NASDAQ (USA): down 0.1%
In London, UK shares were sold down, with FTSE-listed shares of BHP and Rio Tinto falling 3.5% and 3.1%, respectively, following a shock election call by Prime Minister Theresa May, sending the British pound sharply higher.
May's election comes ahead of Britain's proposed exit from the European Union, with many believing that she has called for an election now to build support for Brexit. However, the opposition says most voters don't understand the consequences of Britain's proposed exit. Adding fuel to the selloff was a commodity price rout, with iron ore and copper trending firmly lower.
Across the pond, US markets ended lower following European markets. Investment bank Goldman Sachs delivered its results to the market and its shares were sold off almost 5%.
Closer to home, the S&P/ASX 200 is expected to open sharply lower, led down by mining shares.
Shares in focus will include BHP, Rio Tinto and Fortescue Metals Group Limited (ASX: FMG), each of which is likely to feel the pinch of lower commodity prices.
Saracen Mineral Holdings Limited (ASX: SAR) updated the market with the release of its quarterly production report showing 65,130 ounces produced. It also stated that current gold production is on track to meet guidance for the June quarter.
Yowie Group Ltd (ASX: YOW) shares could come under pressure following a reduction in its annual forecast sales growth from 85% to 70%.
Brambles Limited (ASX: BXB) released a trading update for its most recent quarter revealing 4% sales growth. It also reaffirmed its underlying profit expectations.
Also in focus will be shares of TPG Telecom Ltd (ASX: TPM). Yesterday, shares of the telecommunications heavyweight fell 16% following its release from a trading halt. TPG is planning to undertake a capital raising to fund its mobile network expansion.
Over the past month, shares of rival telcos Vocus Group Ltd (ASX: VOC) and Telstra Corporation Ltd (ASX: TLS) have fallen 27% and 16%, respectively.
Finally, in broker news, Morgans analysts raised their Transurban Group (ASX: TCL) share price target 2.8% to $11.47, according to Dow Jones Newswires.
