The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is set to fall sharply when the market opens this morning as a result of crumbling commodity prices overnight.
Iron ore, which is Australia's most important commodity export, fell 1.6% to US$47.81 a tonne, according to the Metal Bulletin, while Brent oil and spot gold were down 3.7% and 0.4%, respectively. Copper and West Texas Intermediate oil also fell sharply with the entire Bloomberg Commodity Index sinking to its lowest level since 1999.
A weak international lead should also weigh on the local bourse. In the US overnight, the Dow Jones and NASDAQ indices fell 1.4% and 1% respectively, while London's FTSE 100 dropped 1.9%. The Sydney Futures Exchange is pointing to a 69 point, or a 1.4% decline when the market opens.
BHP Billiton Limited (ASX: BHP) will again be on the market's radar after its London-listed shares plunged 5% overnight.
The stock has been sold off heavily in response to last Friday's dam disaster in Brazil while questions regarding the sustainability of its progressive dividend policy could add more pressure to its performance.
Notably, Rio Tinto Limited's (ASX: RIO) London-listed shares also fell 3%, pointing to a tough day at the office today. Fortescue Metals Group Limited (ASX: FMG) could also come under pressure as a result of the fall in commodity prices, as could Woodside Petroleum Limited (ASX: WPL).
Shareholders of Santos Ltd (ASX: STO), on the other hand, will be looking for some reprieve after yesterday's 27% poleaxing.
Also on the radar will be Nine Entertainment Co Holdings Ltd (ASX: NEC) and Southern Cross Media Group Ltd (ASX: SXL). The pair have been involved in takeover talks, but they appear to have stalled following the sharp rise in the price of Southern Cross shares over the last fortnight.
A number of groups will hold their annual general meetings today, which could provide insight into how they're travelling so far this year. Some of these companies include TFS Corporation Limited (ASX: TFC) as well as property groups Lend Lease Group (ASX: LLC) and Abacus Property Group (ASX: ABP).
