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5 things you need to know about the Australian sharemarket today

Welcome to Wednesday. Here are the five things I’m looking at today on the Australian sharemarket.

  1. The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has crashed at the opening, down 0.9% already, following the leads set by Wall Street overnight. The S&P 500 and tech-heavy NASDAQ both lost 0.1%, while the Dow Jones Index fell 0.2%.The spot gold price dropped 0.6% to US$1,208 an ounce, while iron ore continues to fall, losing another 90 cents overnight to US$77.50 per tonne.

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    The Wisdom of Warren Buffett – and 2 ASX stocks he could love

  2. Is Rio Tinto Limited (ASX: RIO) a takeover target?
    Bernstein Research on Wall Street certainly thinks so. Analysts at the firm suggest Rio is a logical takeover target by giant resources and commodities trade Glencore.News reports also suggest that Glencore CEO Ivan Glasenberg has told institutional investors that Rio was a more likely play than London-based Anglo American.

    The main issue is that Rio’s market cap is around $105 billion compared to Glencore’s circa-$84 billion. But any takeover may not occur for years – BHP Billiton Limited’s (ASX: BHP) tilt at Rio was launched two years after first devising the plan.

  3. Liquefied Natural Gas Limited (ASX: LNG) boss Maurice Brand has told the Australian Financial Review that he’s surprised by the timing of the company’s rocketing share price, rather than the magnitude. LNG shares are up 1,300% so far this year, and 1,637% in the past twelve months – and you can read more on why in this article we wrote yesterday.No other company in the ASX 200 has even doubled in price since January.
  4. Tweet of the Day.

    More money to be made in taking photos of bitcoins than in actual holding bitcoins?

  5. Stock of the Day – brought to you by Motley Fool Australia – our writer’s selection of their Top Stock Picks for October. Eagerly awaited by investors each month, this is a must read.

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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