Sinking oil prices and the plunging Aussie dollar are painting an even bleaker picture for Australian stocks which are facing their fifth straight day of losses.
No positive lead either with US stocks closing lower on Wednesday weighed by investor concerns on global economic growth and the stagnant oil prices.
Increased tensions in the geopolitical sphere following an alleged hydrogen bomb testing in North Korea and executions in Saudi Arabia are also causing worry.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.5 per cent to close at 16,907, the S&P 500 slipped 1.3 per cent to close at 1,990 and the NASDAQ lost 1.1 per cent to close at 4,836.
European markets all closed lower: London’s FTSE shed 1 per cent, Paris dipped 1.3 per cent and Frankfurt ended 0.9 per cent down.
Asian markets closed mixed: Tokyo’s Nikkei slipped 1 per cent, Hong Kong’s Hang Seng also lost 1 per cent, and China’s Shanghai Composite advanced 2.25 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 61 points down to finish at 5,123. On the futures market the SPI is pointing 5 points lower.
Currencies
The Australian Dollar at 8:30AM was buying 70.72 US cents, 48.34 Pence Sterling, 83.77 Yen and 65.6 Euro cents.
Company news
Excelsior Gold Limited
(ASX:EXG) says it has now commenced mining at the Big Blow South open pit. This brings the number of operating pits at the Kalgoorlie North Gold project to three. Higher gold prices also start from March as hedging comes into effect. Shares in Excelsior Gold last traded 2.35 per cent higher at $0.087.
Berkeley Energia Limited
(ASX:BKY) says its mineral resource estimate for the Retortillo deposit in Western Spain has been lifted by a 15 per cent jump in grade. It’s good news for the Salamanca project which is aiming to be one of the world’s lowest cost producers of uranium. Shares in Berkeley Energia last traded 5.05 per cent lower at $0.47.
Ex-dividends One company is trading ex- dividend today. Aberdeen Leaders
(ASX:ALR) will pay one cent fully franked.
Commodities
Gold has added $15.70 to US$1,094 an ounce for the February contract on Comex. Silver is up 2 cents to $13.99 for March. Copper is down 1 cent to $2.09 a pound. Oil has plunged $1.93 to US$34.04 a barrel for February light crude in New York.
