MENU

ASX 200 set to drop as the oil price plunges

Share markets around the world fell overnight with the local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) also set to open lower at 10:00am AEST.

The Sydney Futures Exchange is pointing to a 19-point drop, although it could fall further than that if the performance from its international counterparts is anything to go by.

Here’s a market wrap.

  • FTSE 100 (UK): up 0.35%
  • DAX (Germany): down 1.82%
  • CAC 40 (France): down 1.69%
  • Dow Jones (USA): down 0.61%
  • NASDAQ (USA): down 0.82%

Shares in the energy sector will likely be a key focus for today after oil prices tumbled almost 5% overnight, likely due to global growth concerns.

BHP Billiton Limited (ASX: BHP) could be in for a rough day after its London-listed shares dropped 1.3% overnight, while Woodside Petroleum Limited (ASX: WPL), Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG) could also come under some selling pressure.

BC Iron Limited (ASX: BCI) could also come under pressure after its shares rocketed nearly 26% yesterday. The company was issued a please-explain from the ASX, to which it said it was not aware of any reason behind the sudden jump in share price or trading volume, aside from perhaps the recent jump in iron ore prices.

Godfreys Group Ltd (ASX: GFY) could be hit by investors in response to the sudden resignation of CEO Kathy Cocovski. She’s only been in the role since January, suggesting there could be problems at the vacuum retailer.

Meanwhile, investors will also hope for a rebound from the banks. All four banks dropped sharply yesterday, including a 1.6% drop for National Australia Bank Ltd. (ASX: NAB). The falls can likely be attributed to the Reserve Bank’s decision to leave interest rates on hold, and the likelihood that the banks will need to raise their capital reserves further in the near future.

Furthermore, investors will also hope for further gains from Catapult Group International Ltd (ASX: CAT), Appen Ltd (ASX: APX) and Jumbo Interactive Ltd (ASX: JIN). The trio all released positive announcements yesterday and rose strongly as a result.

Appen actually ended the day marginally lower, but not before soaring to a new all-time high earlier in the session.

In broker news, Morgan Stanley increased its price target on BlueScope Steel Limited (ASX: BSL) by 7.9% to $8.05 yesterday, up from yesterday’s closing price of $6.87.

Free Report: How 1 Man Turned $10K Into Over $8 Million

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.