Oil, iron ore plunge, dragging down Wall Street: Aus shares to open lower

Market Reports

by Anna Napoli

Aus shares are set to kick off the week in negative territory following steep losses on Wall Street on Friday and falling oil and iron ore prices. Oil tumbled to its lowest price in a year, with Brent losing 6 per cent, iron ore was also weaker, and, this saw US listed shares of RIO and BHP pull back. The sharp commodity price falls weighed on equities in the US, with the energy sector shedding 3 per cent. The tech sector also contributed to losses, dragging down the broader market. Apple which has now fallen more than 25 per cent since hitting an all-time high earlier this year dropped 2.5 per cent on Friday.

Local economic news

It’s a relatively quiet week for economic news, today Reserve Bank Governor Philip Lowe speaks at the Australian Payment Summit in Sydney, on Wednesday the ABS Construction Work figures for the September quarter are released, on Thursday we can expect the Private Capital Expenditure Publication from the ABS and finally on Friday Reserve Bank releases Financial Aggregates publication.

Markets

Wall Street closed lower on Friday, The Dow Jones Industrial Average fell 0.7 per cent to close at 24,286, the S&P 500 also dropped 0.7 per cent to 2633 and the NASDAQ shed 0.5 per cent to 6939.

European markets were mixed on Friday, London’s FTSE fell 0.1 per cent, Paris added 0.2 per cent and Frankfurt was up 0.5 per cent.

Asian markets closed mostly lower on Friday, Tokyo’s Nikkei was closed,Hong Kong’s Hang Seng fell 0.4 per cent and China’s Shanghai Composite dropped 2.5 per cent.

On the futures markets, the SPI futures are pointing to a 37 points fall. On Friday, the Australian share market closed higher with the S&P/ASX 200 Index adding 25 points at 5716.

Company news

Capilano Honey (ASX:CZZ) has received the green light from the Federal Court for its $200 million takeover by Australian-Chinese private equity fund Wattle Hill. It comes after the company's shareholders endorsed the deal earlier this month. Wattle Hill will acquire 100 per cent of Capilano shares at $20.06 a share. The scheme implementation date is next Wednesday the 5th of December. Shares in Capilano Honey (ASX:CZZ) last traded at $20.92.

Ex-dividends

Contango Income Generator (ASX:CIE) is paying 1.55 cents 50 per cent franked.
Infratil (ASX:IFT) is paying 5.4975 cents unfranked.

Currencies

One Australian Dollar at 7:40AM was buying US72.35 cents, 56.42Pence Sterling, 81.66 Yen and 63.78 Euro cents.

Commodities

Iron ore futures are pointing to a 4 per cent fall.
Gold has dropped $4.80 to $US1223 an ounce.
Silver was down 26 cents to $US14.37 an ounce.
Oil fell $4.21 to $US50.42 a barrel.

Cryptocurrencies

Bitcoin has lost 7.1 per cent to US$3883, Ethereum has fallen 5.8 per cent to US$113 and XRP was down 10.6 per cent to US$0.35.