Morning Market Movers: 7 stocks to watch

The local share market is expected to open lower today following falls in US and European markets overnight.

Here’s a recap:

  • Dow Jones (USA) – down 0.92%
  • NASDAQ (USA): down 0.07%
  • FTSE 100 (UK): down 1.42%
  • DAX (Germany) – down 1.95%
  • EURO STOXX 50 (Europe) – down 1.87%

In the US, leading resources businesses led markets lower. It was the same on European markets, with FTSE-listed shares of BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: BHP) and Anglo American Plc falling 5%, 8.4% and 11.3%, respectively. In a shocking – but not entirely unexpected – announcement, Anglo American said it will suspend its dividend, strip billions of dollars of assets from its balance sheet and cut its workforce by 85,000 – from 135,000 to 50,000.

Given the gravity of the news, from what was – just one year ago – a major global mining house, locally listed shares of Fortescue Metals Group Limited (ASX: FMG), BHP and Rio will almost certainly come under pressure.

The Sydney Futures Exchange is pointing to a 23-point slide in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open.

To add to the pressure, iron ore prices fell again overnight, to $US38.80 per tonne, according to the Fairfax Press. Motley Fool writer/analyst, Mike King, recently showed that just two Australian iron ore miners are making money with market prices below $US40 per tonne.

Following vicious selloffs in oil producers’ share prices yesterday, crude oil prices stabilised overnight, but remain near a seven-year low. Santos Ltd (ASX: STO), Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shareholders will be hoping for some reprieve from the recent downtrend.

Finally, Northern Star Resources Ltd (ASX: NST) shares will also be in focus after the company gave an update to the ASX this morning on its Hermes deposit at its Plutonic operation.

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Motley Fool contributor Owen Raszkiewicz has no position in any stocks mentioned.

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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