Monday marked the S&P/ASX 200's (Index: ^AXJO) (ASX: XJO) worst single-day since late June when Britain voted to leave the European Union (dubbed 'Brexit'). Shares on Wall Street bounced back strongly overnight, however, which offers some hope for local investors on Tuesday.
Here's a quick recap:
- FTSE 100 (UK): down 1.12%
- DAX (Germany): down 1.34%
- CAC 40 (France): down 1.15%
- Dow Jones (USA): up 1.32%
- NASDAQ (USA): up 1.68%
Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) were hit hard on Monday, dragging the broader market lower.
Other shares that were also hammered include Sydney Airport Holdings Ltd (ASX: SYD) and Transurban Group (ASX: TCL), which fell 6.3% and 2%, respectively.
However, comments from a US Federal Reserve member helped to mitigate concerns that a rate hike in that country may be imminent, which helped boost share prices. That will give investors some confidence going into today's session, which may provide some hope for each of those shares.
The comments also acted to boost the Australian dollar, which is fetching US75.66 cents. The Sydney Futures Exchange is also pointing to a massive 78-point rebound at the open, representing a lift of around 1.5%.
Brent oil experienced a minor recovery overnight, regaining 0.4%, while iron ore shed 0.6%, according to The Metal Bulletin. Shares of BHP Billiton Limited (ASX: BHP) and South32 Ltd (ASX: S32) crumbled yesterday, but a recovery of sorts is possible today.
Electronics retailer JB Hi-Fi Limited (ASX: JBH) will be a key focus for the market today. The company is said to have closed a deal to acquire its rival, The Good Guys, with The Australian Financial Review's Street Talk column reporting it will launch a $350 million rights issue this morning to help fund the deal. The shares closed slightly more than 4% lower on Monday but remain near an all-time high price.
Orthocell Limited (ASX: OCC) will be in focus today among small-cap biotechnology investors after the company released its full-year accounts last night. The group reported a $3.8 million loss for the period, which was slightly greater than the loss reported in 2015.
Finally, energy business Oil Search Limited (ASX: OSH) could also receive attention after it announced it had acquired exploration acreage in the offshore Papuan Gulf.
