Welcome to Friday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has opened 0.3% higher, as US markets rose for a third consecutive day overnight. The S&P 500 gained 0.5%, while the Dow Jones added 0.6% to hit an all-time high of 17,266. The NASDAQ was up 0.7% and Russell 2000 Index posted a 0.5% rise.Alibaba Group, the giant Chinese c-ecommerce company lists tonight on the New York Stock Exchange (NYSE) – with expectations that it will be valued at around US$167 billion, more than US giant Amazon – at US$150 billion.
Related: Special Video report on our analysts' #1 ASX tech pick
- Iron ore prices plunged 1.3% overnight to SU$83 a tonne – suggesting that the recent uptick in prices was a dead cat bounce – and it could be headed further south.That's not great news for Australia's junior iron ore miners, who have seen their share prices drop faster than you can say "Who needs more steel?"
Year-to-date, BC Iron Limited (ASX: BCI) is down 61%, Mount Gibson Iron Limited (ASX: MGX) 41% and Atlas Iron Limited (ASX: AGO) has dropped 52%. Even Fortescue Metals Group Limited (ASX: FMG) hasn't been spared, down 31%. In early trading, most iron ore miners are down.
- Scotland has begun voting in an independence referendum, which will decide the fate of Britain. According to opinion polls, many Scots are still undecided which way they will vote, many the outcome too close to call.
Should Scotland vote to become an independent country, it could have massive consequences for securities markets, with London bankers warning of market turmoil.National Australia Bank (ASX: NAB) is reported to be considering moving Glasgow-based Clydesdale bank south of the border, if the public vote for independence. Analysts suggest such a move could cost the bank near on $180 million – around half of the bank's 2015 financial year earnings. NAB shares were up 0.7% in early trading.
- Tweet of the Day
.@RBAInfo looks to adopting NZ model of home lending limits. #ausbiz #auspol #ausproperty https://t.co/8Cjj5HfXEZ
Financial Review (@FinancialReview) September 18, 2014The RBA may consider adopting loan-to-valuation limits such as those implemented by new Zealand and Canada in recent years, in an effort to cool the housing market.
- Stock of the Day – brought to you by Claude Walker – the iron ore miners. An entertaining and enlightening article, and a must read for retail investors who own or are thinking about investing in those miners.
