S&P/ASX 200 to crash: 7 shares to watch

The local S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) is expected to trade lower following negative leads from overseas markets overnight.

Here’s a recap:

  • Dow Jones (USA): down 1.58%
  • NASDAQ (USA): down 2.08%
  • FTSE 100 (UK): down 2.39%
  • DAX (Germany): down 4.28%
  • EURO STOXX 50 (Europe): down 3.1%

Overnight, global markets were rocked by poor economic data from China, and the suspension of trading of shares on the benchmark CSI300 after shares fell 7% yesterday.

In the US, the Dow Jones fell hard at the open and came under pressure when economic data showed slowing manufacturing in the world’s largest economy.

In Europe, the China uncertainty placed more pressure on raw material producers. FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) fell 3.1% and 3.9%, respectively.

Closer to home, the Sydney Futures Exchange is tipping a fall in the S&P/ASX 200.

Shares in focus will include Dick Smith Holdings Ltd (ASX: DSH). The struggling electronics retail chain officially entered voluntary administration this morning after the company failed to generate alternative funding arrangements. Chairman Rob Murray said the company’s cash generation in December was below management expectations, and voluntary administrator McGrath Nicol has been appointed.

Shares of Asciano Ltd (ASX: AIO) will also be in focus after the takeover target revealed one of its potential suitors, USA-based Brookfield (acting through Nitro Corporation Pty Ltd), extended its offer period to 22 January. A consortium, which includes Qube Holdings Ltd (ASX: QUB), is also conducting due diligence on Asciano.

Shares of major miners Rio, BHP and Fortescue Metals Group Limited (ASX: FMG) will also be in focus today, so too will shares of oil producers like Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) following unrest in oil producing nations throughout the Middle East.

Finally, with exposure to China, shares of Australia and New Zealand Banking Group (ASX: ANZ) may also come under pressure today.

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Motley Fool writer/analyst Owen Raszkiewicz has no position in any stocks mentioned.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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