S&P/ASX 200 set to trade flat: 9 shares to watch

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to trade sideways today following negative leads from international markets.

Here’s a recap:

  • FTSE 100 (UK): down 3.1%
  • DAX (Germany): down 6.8%
  • CAC 40 (France): down 8%
  • Dow Jones (USA): down 3.4%
  • NASDAQ (USA): down 4.1%

In London, shares slumped after Britain elected to leave the Eurozone. The “leave” vote, dubbed ‘Brexit’, sent ripples throughout Europe and global markets. FTSE-listed shares of BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) finished 1.3% and 0.6% lower, respectively.

US markets also felt the effects of Brexit, with each stock exchange falling sharply. The financial sector was worst performing, falling 6%, while the utilities sector was best performing.

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

Shares in focus will include BHP Billiton. This morning, the global mining giant made a presentation stating its exploration spend would account for 18% of its capital budget, or as much as $US900 million in its 2017 financial year. It also revealed operating costs had fallen 70% since 2013.

Australia’s major bank shares will also be in focus today after a report written by NAB senior credit analyst, Simon Fletcher, concluded tougher bank capital requirements are coming. If higher capital reserves are indeed required, Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) will be expected to boost the amount of ‘safe’ capital they hold in the event of a market shock.

Finally, Wellard Ltd (ASX: WLD) updated the market on its Separation Settlement revealing it will be paid $15.8 million by WGH Holdings Pty Ltd to restore its balance sheet.

In broker news:

  • Canaccord Genuity analysts cut their Perseus Mining Limited (ASX: PRU) price target 14% to $0.90;
  • Deutsche Bank analysts cut their Sims Metal Management Ltd (ASX: SGM) price target 8.8% to $7.99;
  • Macquarie analysts raised their Fortescue Metals Group Limited (ASX: FMG) price target 3% to $3.60, according to Dow Jones Newswires.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned in this article. You can follow Owen on Twitter @ASXinvest.

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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