Sliding oil prices and continued fallout from the Federal Reserve’s decision to raise interest rates combined to send US stocks plunging to their lowest levels since October.
High volatility from the expiration of futures and options also brought a surge in volumes on close.
Local stocks are set to limp as bad news for BHP Billiton continues. A judge has frozen the Brazilian assets of the mining giant as plans are made for clean-up costs and compensation following the dam disaster.
Markets
Wall Street closed lower on Friday: The Dow Jones Industrial Average plunged 2.1 per cent to close at 17,129, the S&P 500 lost 1.8 per cent to close at 2,006 and the NASDAQ lost 1.6 per cent to close at 4,923.
European markets closed lower: London’s FTSE shed 0.8 per cent, Paris lost 1.1 per cent and Frankfurt slipped 1.2 per cent.
Asian markets also closed lower: Tokyo’s Nikkei retreated 1.9 per cent, Hong Kong’s Hang Seng was flat, and China’s Shanghai Composite slipped 0.5 per cent.
The Australian share market closed flat ahead of the weekend: The S&P/ASX 200 Index closed 5 points up to finish at 5,107 to be 77 points higher on the week. On the futures market the SPI is 40 points down.
Currencies
The Australian Dollar at 7:20AM was buying 71.8 US cents, 48.16 Pence Sterling, 87 Yen and 66.04 Euro cents.
Company news
Centuria Capital Limited
(ASX:CNI) has made a killing on the sale of office buildings in Sydney’s Macquarie Park. The two properties were purchased for $24 million in 2000 and will sell for $101 million if approved by their unlisted fund investors at a meeting in January. Shares in Centuria Capital last traded flat at $0.925.
Broadspectrum Limited
(ASX:BRS) says it has signed a new five year contract with NSW Land and Housing Corporation worth up to $950 million. This nearly doubles the revenue of the previous contract and includes an option for a two year extension.
Shares in Broadspectrum last traded un-changed at $1.27.
Commodities
Gold has advanced $16 to $US1,066 an ounce for the February contract on Comex. Silver rose 38 cents to $14.08 for March. Copper has added 6 cents to $2.11 a pound. Oil has slipped $0.44 to US$35.83 a barrel for January light crude in New York.
