Welcome to Friday Fools. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened down 0.2%, as resource stocks and QBE Insurance Group Ltd (ASX: QBE) take the biggest hits. That's despite gains on world markets.On Wall Street overnight, the Dow Jones gained 0.4%, while the broader S&P 500 and the tech-heavy NASDAQ both gained 0.5%. Retail sales in the US rose by 0.7% in November – the most in eight months according to Bloomberg.
But the oil price dropped below US$60 for the first time since 2009, with WTI Crude oil falling 2.7% to trade at US$59.30. Brent Crude was trading at US$63.30 per barrel, down 1.5%.
Iron ore prices continue to remain subdued – currently fetching US$69.37 a tonne.
The Australian dollar is currently buying 82.6 US cents, and the RBA's governor Glenn Stevens says we'd like to see it at 75 US cents. Not long ago he was calling for the currency to trade at 85 US cents.
- The falling oil price has claimed its first victim. ASX-listed US shale driller Red Fork Energy Limited (ASX: RFE) has fallen into administration, after being unable to pay its debts. It's unlikely to be the first.
- Leighton Holdings Limited (ASX: LEI) has announced the sale of its John Holland business in a $1.15 billion deal. China Communications Construction Company (CCCC), ranked as the fourth-largest construction company in the world, is the buyer.The deal allows Leighton to narrow its focus on public-private partnerships (PPPs) and contract mining.
- Tweet of the Day
$A falls to 4 1/2-year low as #RBA gov Glenn Stevens eyes $US75¢ @MulliganMark @RBAInfo https://t.co/a9GD2Asu8t pic.twitter.com/p7BcIBNXG1
Financial Review (@FinancialReview) December 11, 2014
The Aussie dollar is not far off 75 US cents now. - Stock of the Day – brought to you by Bruce Jackson – Carnarvon Petroleum Limited (ASX: CVN). Bruce has a penchant for speculative oil stocks, and in this article makes the case for Carnarvon.
