Outlook: ASX to follow global stocks down

Market Reports


Global stocks sank lower overnight with London’s FTSE testing levels not seen since mid 2012.
 
The banks have proved the big losers in world markets with huge sell-offs in the financial sector as investors pile into safe havens like gold. 
 
Wall Street is now trading firmly in bear territory and local stocks are also looking to go lower on open.
 
Markets

Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.6 per cent to close at 15,660, the S&P 500 slid 1.2 per cent to close at 1,829 and the NASDAQ lost 0.4 per cent to close at 4,267.
 
European markets closed in a sea of red: London’s FTSE shed 2.4 per cent, Paris tumbled 4.1 per cent and Frankfurt slid 2.9 per cent.
 
Asian markets closed lower as well: Tokyo’s Nikkei and China’s Shanghai Composite did not trade but Hong’s Hang Seng ended 3.9 per cent lower. 
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 45 points up to finish at 4,821. On the futures market the SPI is pointing 36 points lower.  

Currencies

Australian Dollar at 8:20AM was buying 70.98 US cents, 49.05 Pence Sterling, 79.8 Yen and 62.72 Euro cents.
 
Company news
 
Decmil Group Limited (ASX:DCG) has confirmed that due to the challenging conditions in the natural resources sector an accommodation village will be devalued. The Homeground Gladstone village will be booked at $110.8 million resulting in a none-cash pre-tax charge of $78.1 million to the half year results. Shares in Decmil Group last traded 3.05 per cent lower at $0.96. 
 
Sedgeman Limited (ASX:SDM) has reported a half year net profit of $8.2 million well up on last year’s $4.7million. The mining services company has repositioned itself well through delivering value to clients and while it flagged a softer second half the company was positive for its pipeline of future work. Shares in Sedgeman last traded 0.93 per cent higher at $1.08. 
 
Ex-dividends

Two companies are trading ex-dividend today. Class Limited (ASX:CL1) will pay 1 cent with no franking and Platinum Capital Limited (ASX:PMC) will pay 3 cents fully franked. 
 
Commodities

Gold has surged $51.70 to $1246 an ounce for the April contract on Comex. Silver has added 49 cents to $15.78 for March. Copper is down 2 cents to $2.01 a pound. Oil has added 5 cents to US$29.71 for March light crude in New York.

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