Welcome to Wednesday. 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 lower after Wall Street was crunched last night.The Dow Jones Industrial Average sank 1.9% and the broader S&P 500 plummeted 1.7% while the tech-heavy NASDAQ also fell 1.7%. The rising US dollar is likely to act as an anchor on US multinational companies' foreign earnings say commentators and analysts, and could hamper US economic growth.Crude oil prices fell overnight, with Brent oil down 3.6% to US$56.40 per barrel while iron ore slipped for the sixth day in a row losing 0.7% to US$58.15 per tonne.
The Australian dollar is lower against the US dollar and is currently buying 76.7 US cents.
- BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) are showing no signs of mercy for Australia's junior iron ore miners, as the big producers increase their production, despite obvious signs of oversupply. Rio boss Andrew Harding has reiterated comments that the giant miner will run its iron ore business at capacity while Rio aims to reduce its already low production costs to astonishing levels.For the likes of Atlas Iron Limited (ASX: AGO), Arrium Ltd (ASX: ARI), BC Iron Limited (ASX: BCI) and Mount Gibson Iron Limited (ASX: MGX) their very survival is on the line.
- Investment bank Macquarie Group has raised its price target on Commonwealth Bank of Australia (ASX: CBA) to $101.
"CBA remains the clear standout for us in the sector, with quality franchises in retail and an opportunity to extend its leadership in small and medium-sized enterprises – hence we upgrade our earnings and move our target price to $101," say Macquarie Analysts.
With Australia's economy looking weaker, unemployment rising and the property market soaring, banks will be at the forefront of any stockmarket downturn. Look out below.
- Tweet of the Day
More telco competition – Optus offers new and re-newing customers 6mth sub to Netflix with home brdband bundle & postpaid mobile #ausbiz
Tony Boyd (@TonyBoydAFR) March 10, 2015First it was a deal with iiNet Limited (ASX: IIN), Now Netflix has inked an agreement with Optus – owned by Singapore Telecommunications Ltd (CHESS) (ASX: SGT).
- Stock of the Day– brought to you by Owen Raskiewicz – Monadelphous Group Limited (ASX: MND). The construction and engineering company saw its shares slammed down 10% yesterday – but it's no bargain. Read more here.
