The Australian share market looks to follow global markets down after stocks retreated amid fears of escalating tensions between Ukraine and Russia. Wall Street dropped as investors worried about the region’s instability with US and European governments now threatening sanctions against Russia if it proceeds with military intervention in Ukraine. As Russia’s benchmark indexes sank more than 10 per cent global funds poured back into safe haven assets with gold futures gaining 2 per cent and the price of oil also rising.
Closer to home the Reserve Bank will announce its March policy decision amid expectations Australia’s key cash rate will remain steady at a record low of 2.5 per cent for the sixth straight meeting.
Global markets
After rallying in February Wall Street plunged into March: The Dow Jones Industrial Average dropped 154 points to close at 16,168, the S&P 500 dropped 14 points to close at 1,846 and the NASDAQ dropped 31 points to close at 4,277.
European markets dropped into March: London's FTSE 100 Index fell 101 points, France's CAC 40 fell 117 points and Germany's DAX fell 333 points.
Asian markets closed mixed on Monday: Japan’s Nikkei lost 189 points, Hong Kong’s Hang Seng lost 336 points, and China’s Shanghai Composite added 19 points.
After a gain of 4.2 per cent in February the Australian share market started March in the red yesterday: The S&P/ASX 200 index fell 20.5 points to close at 5,384. On the futures market the SPI is 14 points lower.
Currencies
The Australian dollar at 8:15AM was buying $US0.893, 53.62 Pence Sterling, 90.54 Yen and 65.04 Euro cents.
Economic news due out today
Reserve Bank of Australia: March interest rate decision
Dun and Bradstreet: Business expectations survey
Australian Bureau of Statistics: Building approvals for January, Balance of Payments and International Investment Position for the December quarter and Government finance statistics for the December quarter
Company news
Shares in Carnarvon Petroleum Limited
(ASX:CVN) rose yesterday after inking a deal to sell up to half of its 40 per cent stake in its Thailand assets. The company will gain up to $72 million from the divestment to a Singapore listed oil and gas company named Loyz Energy, who will come on board as part of a joint venture. Carnarvon says the transaction will enable it to commercialise a significant proportion of the value of its Thai assets. The company says the deal also ensures it is very strongly focused on creating value from success in its North West Shelf endeavors with the first well expected to spud in the June quarter. Shares in Carnarvon Petroleum rose 9.38 per cent on Monday to end the session at $0.07.
Shares in Arowana International Limited
(ASX:AWN) jumped yesterday after entering into an agreement to buy a 50 per cent interest in Online Courses Australia Group. Arowana says the acquisition will provide the company with the people, technological platform, content, intellectual property and systems and processes to accelerate the roll out of its planned online education business in New Zealand. The purchase is also expected to enhance Arowana’s revenue, earnings and cash flow through its growing online education business in Australia. Shares in Arowana International jumped 12.5 per cent on Monday to end the session at $0.90.
Ex-dividends
Corporate Travel Management Limited
(ASX:CTD)
Commodities
Gold has jumped $28.70 to $US1,350.30 an ounce for the April contract on Comex.
Silver has gained $0.24 to $21.48 for May.
Copper has eased $0.01 to $3.17 a pound.
Oil has lifted $2.33 to $US104.92 a barrel for April light crude in New York.
