The Australian share market is set to sink into the session after Wall Street dropped following the US Federal Reserve’s monetary policy statement. America’s central bank offered a confident outlook for the economy while affirming its patient stance on lifting interest rates. While many are speculating there will be no moves before the middle of the year the potential of a rate rise pushed stocks steeply into the red.
Elsewhere the Australian dollar is under $US0.80 with the price of iron ore at a fresh five-year low and the price of oil at a six-year low. Production results are today due from Fortescue Metals Group Limited
(ASX:FMG), PanAust Limited
(ASX:PNA), Oil Search Limited
(ASX:OSH) and Beach Energy Limited
(ASX:BPT).
Global markets
Wall Street widened losses on Wednesday: The Dow Jones Industrial Average retreated 1.1 per cent to close at 17,192, the S&P 500 retreated 1.4 per cent to close at 2,002 and the Nasdaq retreated 0.9 per cent to close at 4,638.
European markets ended mixed on Wednesday: London's FTSE 100 firmed 0.2 per cent, France's CAC 40 dipped 0.3 per cent and Germany's DAX gained 0.8 per cent.
Asian markets also put in a mixed performance: Japan’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng lifted 0.2 per cent, and China’s Shanghai Composite declined 1.4 per cent.
The Australian share market recovered from a weak start to end higher yesterday: The S&P/ASX 200 index rose 6 points to finish at 5,553. On the futures market the SPI is 65 points lower.
Currencies
The Australian dollar at 8:20am was buying $US0.7898, 52.2 Pence Sterling, 92.83 Yen and 70.02 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International trade price indexes for the December quarter
Company news
Fortescue Metals Group Limited
(ASX:FMG) will be in the spotlight today when it releases production numbers for the December quarter. The results will come after the Pilbara focussed iron ore miner last month halved its planned spending over the coming year but kept its output target. At the time Fortescue confirmed it expects to deliver between 155 million and 160 million tonnes of iron ore over the full 2015 financial year. Shares in Fortescue have shed more than 25 per cent this year and fell 1.92 per cent to close at $2.04 on Wednesday ahead of today’s results.
After the market closed yesterday Aquarius Platinum Limited
(ASX:AQP) showed it has achieved production growth and lower costs in the fourth quarter. The miner lifted total output attributable to the company by 2 per cent from the third quarter and 5 per cent from the year before. Aquarius says it delivered highest attributable quarterly production for a quarter from Kroondal, Mimosa and Plat Mile combined. Shares in Aquarius Platinum ended steady at $0.27 on Wednesday ahead of releasing results.
Ex-dividends
Djerriwarrh Investments Limited
(ASX:DJW) paying a 10 cent fully franked dividend
Commodities
Gold has dropped $7.10 to $US1,286 an ounce for the February contract on Comex.
Silver has fallen $0.08 to $18.00 for March.
Copper is trading flat at $2.46 a pound.
Oil has shed $1.90 to $US44.33 a barrel for February light crude in New York.
