Outlook: Aus shares set for horror 2% drop

Market Reports

US stocks entered correction territory on Friday following their worst losses in four years on the back of China worries. Mixed signals from the US Federal Reserve regarding a potential interest rate rise in September and sinking oil prices are also adding to investor concern. 
Huge falls in Europe for the same reasons are all pointing to a big sell off in the Australian market today with some experts predicting the ASX could fall by over 2 per cent. 

Wall Street closed sharply lower on Friday: The Dow Jones Industrial Average plunged 3 per cent to close at 16,460, the S&P 500 lost 3 per cent to close at 1,971 and the NASDAQ lost 3.5 per cent to close at 4,706.
European markets also closed with big losses: London’s FTSE shed 2.8 per cent, Paris lost 3.2 per cent and Frankfurt slipped nearly 3 per cent.
Asian markets lower as well: Tokyo’s Nikkei lost nearly 3 per cent, Hong Kong’s Hang Seng dipped 1.5 per cent, and China’s Shanghai Composite retreated 4.3 per cent. 
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 74 points down to finish at 5,215 to be 142 points down on the week. On the futures market the SPI is down a whopping 110 points. 

The Australian Dollar at 7:20AM was buying 73.09 US cents, 46.60 Pence Sterling, 89.11 Yen and 64.29 Euro cents.           
iNet Limited (ASX:IIN) says the Federal Court has approved the Scheme of Arrangement with TPG Telecom Limited (ASX:TPM). Once the papers are lodged with ASIC later today then iiNet will become a wholly owned subsidiary of TPG. Shares in iiNet closed flat at $9.53 and is likely to cease trading today. 
Phileo Australia (ASX:PHI) says that DTZ has confirmed value of the Rocklea Homemaker Centre at Bendigo at $27.5 million above the carrying value of $22.2 million. The gain is not expected to impact cash flow or tax liability. Shares in Phileo closed steady at $9.15.
To ex-dividends: 7 companies are going ex-dividend today: They are the Australian Governance Master Index Fund (ASX:AQF), Bell Financial Group (ASX:BFG), Energy Action Ltd (ASX:EAX) Flagship Investments (ASX:FSI), ITL Limited (ASX:ITD) Mortgage Choice Ltd (ASX:MOC) and Reckon Limited (ASX:RKN).
Finally to Commodities Gold has jumped $6.40 to $1160 an ounce for the December contract on Comex. Silver has slipped 20 cents to $15.37 for September. Copper is down 2 cents to $2.30 a pound. Oil has shed $0.87 to $40.45 a barrel for September light crude in New York.