Welcome to Tuesday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened 1.1% higher.In the US, the Dow Jones soared 1.5% and the broader S&P 500 gained 1.2% while the tech-heavy NASDAQ also posted a 1.2% rise. It was the biggest rise for the Dow in eight weeks, according to Bloomberg.
Oil prices were flat, with Brent Crude Oil at US$56.46 per barrel, and WTI Crude at US$48.68 per barrel. (WTI stands for West Texas Intermediate and is the benchmark oil price in the US while the Brent crude oil price is more widely used in Europe.)
The Australian dollar was smashed down against the US dollar and is currently buying 76.4 US cents.
- It's a familiar story, but spot iron ore prices fell 0.9% to US52.69 per tonne. Iron ore juniors including Arrium Limited (ASX: ARI), BC Iron Limited (ASX: BCI), Atlas Iron Limited (ASX: AGO), Mount Gibson Iron Limited (ASX: MGX) and even the much larger Fortescue Metals Group Limited (ASX: FMG) could be in for another torrid time today.
- We are getting closer to the first Tuesday of the month, and the Reserve Bank of Australia's (RBA) monthly rates decision board meeting. Odds are mounting that Australia's central bank is likely to cut the official cash rate next week, as commodities prices continue to fall. Markets are pricing in a 66% chance of a rate cut next week – although I suspect the RBA may leave rates on hold again this month, as it waits to see more evidence the last rate cut is having on economic data.
- Tweet of the Day
Today 10 companies pay out dividends to shareholders including BHP Billiton $BHP, paying out around $4.2 billion.^CJ #ausbiz
CommSec (@CommSec) March 30, 2015And much of those funds could find its way back into the market – with term deposit rates so low.
- Stock of the Day – brought to you by Ryan Newman – Fortescue Metals Group Limited (ASX: FMG). How much is Fortescue worth with iron ore prices so low? Find out here.
