Welcome to Thursday. 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 0.3%US markets were smashed overnight, with the Dow Jones dropping 1.7%, the broader S&P 500 a slightly better fall of 1.3% and the tech-heavy NASDAQ crunched, down by 1.9%.
It was a case of bad economic and company news proving to be too much for traders. US durable goods orders data for December 2014 – items meant to last at least three years – fell 3.4%, the worst performance since August 2014 and spooked the market.
Disappointing earnings from Microsoft, Proctor & Gamble Co and heavy equipment maker Caterpillar added to the gloom, as the soaring US dollar hammers offshore earnings.
The Australian dollar is currently buying 79.4 US cents.
- Copper and gold miner Oz Minerals Limited (ASX: OZL) has relocated from Melbourne to Adelaide, thanks to some support from the South Australian government. The miner exceeded its production guidance for the year, pumping out 92,615 tonnes of copper, above the forecast of 90,000 tonnes, and also produced 148,000 ounces of gold.Still, the miner has seen its cash balance slump from $1.33 billion in February 2011 to just $219 million at the end of December 2014.
- Inflation data is out today, and a low reading could spur the Reserve Bank of Australia (RBA) to slash the official cash rate at next week's board meeting.Several economists are predicting the cash rate will drop as low as 2% this year, as Australia tries to come to terms with sliding commodity prices, a falling Australian dollar and continuing weak consumer confidence.
- Tweet of the Day
RT @marcelolprince Pent up demand 4 bigger screens: iPhone unit sales up 46% in holiday Qtr. https://t.co/d8F06KqF6G pic.twitter.com/h2g0sK7vjW
CommSec (@CommSec) January 27, 2015Apple's iPhone 6 sees sales soar in 2014 – yet another reason to consider investing offshore. Australians are limited by the type, industry and size of company offered through the ASX.
- Stock of the Day– brought to you by Andrew Mudie – iCar Asia Ltd (ASX: ICQ). Can this tiny company achieve the same success as Carsales.Com Ltd (ASX: CRZ) has in Australia? Maybe.
