Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Australian shares look set to fall at the open, weighed by a plunge in the oil price.
Oil prices fell nearly 3% to seven-month lows overnight after increases in supply by several key producers overshadowed high compliance by OPEC and non-OPEC oil producers with a deal to cut global output amid a continued sell-off driven by funds.
Investors took profits in the big banks and sold off property stocks.
In mergers and acquisitions news yesterday, the Australian Competition Tribunal approved the $11.3b merger of Australia’s two dominant wagering and gaming businesses, Tabcorp and Tatts.
Tabcorp's board has said the deal will return $1.4 billion in business improvements and cost savings. In other overnight commodities trade, the seaborne iron ore market continued to see moderate trading activity on Tuesday, Metal Bulletin reported, despite retreating ferrous futures in China, which kept buying subdued at Chinese ports.
Meanwhile the world’s second largest supplier to the world’s iron ore trade, Rio Tinto, yesterday used Glencore’s late entrance to the Coal & Allied auction to extract a $400m better deal from Yancoal.
Gold prices marked their lowest settlement in five weeks, as comments from Federal Reserve officials raised expectations for further increases in interest rates this year. The US dollar strengthened against that backdrop, dulling appeal for the yellow metal.
The $A is trading at US75.78c at 9.20am AEST.
Major European and US equities markets fell yesterday as investors dumped energy and mining shares after crude oil prices sank.
The US-listed shares of BHP Billiton and Rio Tinto were more than 3% lower.
Sentiment also took a hit as the previous session's rebound in tech stocks faded.