Following another woeful day of trade on Wall St which had its worst day of 2015, erasing all gains for the year, the Australian share market plunged on open and is 0.79 per cent down at noon. US investors are being spooked by a strong US dollar, the potential for the Fed to start raising interest rates and potential changes to banking rules that may require international banks to hold more capital on hand.
BHP is also proving a large weight on the market, down over 5 per cent as it trades ex-dividend.
The S&P/ASX 200 index is 48 points down at 5,776. On the futures market the SPI is 35 points lower.
Economic news
The Westpac Melbourne-Institute Index shows consumer sentiment dropped by 1.2 per cent in March, back to more neutral levels seen just prior to the budget last May. Consumers are still worried about the outlook for the economy and the jobs situation with personal finances over the next 12 months also top of mind.
Company news
Iress Limited
(ASX:IRE) has today announced that it has won a partnership with Commonwealth Bank to supply an advice technology platform to the Wealth Management business of the bank. CBA chose the IRESS XPLAN platform after an international competitive selection process as a unified solution across multiple customer advice needs. Roll out will commence during 2016 with the deal not expected to impact on 2015 earnings. Shares in Iress are trading 2.11 per cent lower at $9.73.
Insurance Australia Group (ASX)IAG) has announced a reshuffle of the executive team effective at the end of this month. Head of Commercial Insurance Peter Harmer will lead digital strategy with Commercial Insurance Officer Ben Bessel taking over as acting head of Commercial Insurance. Leona Murphy will resume as Chief Strategy Officer alongside her current role integrating the former Wesfarmers insurance business. Chief Risk Officer Justin Breheny will retire, replaced by Acting Strategy Officer Clayton Whipp. Shares in IAG are down 1.01 per cent to $5.91 in morning trade.
Best and worst performers
The best performing sector is real estate investment trusts, gaining 0.8 per cent to 1,297. Shares in Westfield have risen 2.84 per cent and are trading at $9.79. Shares in Charter Hall and GPT Group are also stronger.
The worst performing sector is materials, falling 2.8 per cent to 9,075. Shares in BC Iron have fallen 5.33 per cent, trading at $0.35 after the iron ore price plunged further overnight. Shares in BHP and Fortescue Metals are also lower.
Gold and the dollar
Gold is trading at $US1,164 an ounce.
The Australian dollar is buying 76.29 US cents.
