Outlook: ASX poised to plunge as Wall St sinks

Market Reports

The Australian share market is poised to plunge after Wall Street sank almost 2 per cent. Speculation of an imminent rate rise in America saw the US dollar jump as the Aussie dollar fell to a six-year low. Across commodity markets the price of iron ore has lifted but oil prices have remained weak on oversupply concerns and precious metal prices have fallen. The local bourse may also be impacted by a number of companies trading ex-dividend today, including major miner BHP Billiton Limited (ASX:BHP)
 
Global markets
 
Wall Street closed steeply lower on Tuesday: The Dow Jones Industrial Average tumbled 1.9 per cent to close at 17,663, the S&P 500 plummeted 1.7 per cent to close at 2,044 and the Nasdaq shed 1.7 per cent to close at 4,860.
 
European markets retreated on Tuesday: London's FTSE 100 plunged 2.5 per cent, France's CAC 40 sank 1.1 per cent and Germany's DAX sank 0.7 per cent.
 
Asian markets dropped on Tuesday: Japan’s Nikkei fell 0.7 per cent, Hong Kong’s Hang Seng fell 0.9 per cent, and China’s Shanghai Composite fell 0.5 per cent.
 
The Australian share market retreated from its highs to end almost where it started yesterday: The S&P/ASX 200 index closed 3 points higher at 5,824 on Tuesday. On the futures market the SPI is 47 points lower. 
 
Currencies 
 
The Australian dollar at 7:30am was buying $US0.763, 50.62 Pence Sterling, 92.38 Yen and 71.32 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Housing finance approvals data for January 
 
Westpac Banking Corporation (ASX:WBC)-Melbourne Institute: Monthly survey of consumer confidence
 
Company news
 
AJ Lucas Group Limited (ASX:AJL) has outlined details of three new Petroleum Exploration Licences (PELs) it plans to acquire in New South Wales for $2.5 million. The company says it is confident of the presence of hydrocarbons in the licences as each had significant exploration work. The purchase also includes an 80 per cent interest in drilling and exploration equipment but the acquisition remains subject to approval from the state government. Shares in AJ Lucas Group closed steady at $0.33 on Tuesday before the announcement was made. 
 
The chief of Fortescue Metals Group Limited (ASX:FMG) has called on Australian business to lead on ending Indigenous disparity. The Pilbara focussed iron ore miner’s CEO Nev Power says royalty payments and charitable donations are not the most effective way of fighting Indigenous disparity. Rather, Mr Power has suggested businesses implement programs enabling jobs and training to bridge the skills gap, education and business opportunity. Shares in Fortescue Metals Group fell 5.61 per cent to close at $2.02 on Tuesday. 
 
Commodities 

Gold has declined $6.40 to $US1,160 an ounce for the April contract on Comex. 
Silver has slipped $0.14 to $15.63 for May. 
Copper has dipped $0.05 to $2.62 a pound. 
Oil has dropped $1.71 to $US48.29 a barrel for April light crude in New York.

Ex-dividends
 
Australian Ethical Limited (ASX:AEF)
Air New Zealand (ASX:AIZ)
Bentley Capital Limited (ASX:BEL)
BHP Billiton Limited (ASX:BHP)
Brambles Limited (ASX:BXB)
Ebos Group Limited (ASX:EBO)
FlexiGroup Limited (ASX:FXL)
Gazal Corporation Limited (ASX:GZL)
ICSGlobal Limited (ASX:ICS)
IRESS Limited (ASX:IRE)
Jumbo Interactive Limited (ASX:JIN)
MMA Offshore Limited (ASX:MRM)
Mastermyne Group Limited (ASX:MYE)
Pacific Star Network Limited (ASX:PNW)
Pro-Pac Packaging Limited (ASX:PPG)
Pacific Smiles Group Limited (ASX:PSQ)
Schaffer Corporation Limited (ASX:SFC)
Sims Metal Management Limited (ASX:SGM)
Smartgroup Corporation Limited (ASX:SIQ)
SRG Limited (ASX:STS)
Seymour Whyte Limited (ASX:SWL
Seven West Media Limited (ASX:SWM)
Trade Me Group Limited (ASX:TME)
Zicom Group Limited (ASX:ZGL)

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