Market Open: Global equities, Brent crude and U.S. tech fall as WHC and ILU report
Key Takeaways
- •The ASX 200 is expected to open 0.3% lower and is trading about 20 points below the previous level near 8,820.
- •Weakness in U.S. technology stocks has continued to weigh on Australian market sentiment despite mixed offshore trading.
- •Whitehaven Coal and Iluka Resources are among the first major companies due to report during a materials-heavy earnings week.
- •Evolution Mining has agreed to acquire Carnaby Resources in a $213 million all-scrip deal, and Carnaby closed 57% higher on the news.
- •Myer said full-year sales are expected to be flat at about $4 billion, while Perpetual received another approach from EQT valued at $1.78 billion.
At The Bell — Australian shares are set to open 0.3% lower today, after another selling wave on Tuesday hit equities, Brent crude oil and U.S. technology stocks. The sell-off leaves the ASX 200 about 20 points lower, near 8,820 points, as international trading conditions continue to set the tone.
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Most Wall Street indexes were up at the start of Week 31, with the Nasdaq the only laggard, down 0.2%. London and Japan also finished in positive territory.
Australian shares remain under pressure, largely because of weakness in U.S. technology stocks, which has fed through to local sentiment even as broader offshore markets were mixed. Traders will be looking for a clearer direction as Tuesday trading develops and the resources sector releases its quarterly updates.
Whitehaven Coal (ASX:WHC) and Iluka Resources (ASX:ILU) are the first major names to report this morning, while Sandfire (ASX:SFR), Capstone Copper (ASX:CSC), Rio Tinto (ASX:RIO) and BHP Group (ASX:BHP) remain closely watched through Australia’s materials-heavy reporting week. With commodities still a key driver for the local market, those updates are likely to stay in focus alongside the broader move in resource prices.
Evolution Mining (ASX:EVN) also remains in focus after agreeing to acquire Carnaby Resources (ASX:CNB) in a $213 million all-scrip deal. CNB closed 57% higher on the news.
Elsewhere, Fortescue (ASX:FMG) chief executive “Twiggy” Forrest has called on China to “negotiate fairly” as the contest over prices and supply contracts with the country’s powerful materials ‘cartel’ continues.
Myer (ASX:MYR) is also drawing attention after saying full-year sales would be flat at about $4 billion. Sales rose sharply in May before weakening in June and July.
Perpetual (ASX:PPT) has also received another approach from EQT this week, with the latest offer valued at $1.78 billion.
In foreign exchange, the Australian dollar is buying US69.8c today.
In commodities, priced in U.S. dollars, Brent crude is down further, falling 10% to $87.75 a barrel. Iron ore is down another 0.5% to $97.60 a tonne in Singapore. Gold is at $4,080 an ounce, while U.S. natural gas futures are down to $2.73 per gigajoule.
That’s HotCopper’s Market Open. I’m Isaac McIntyre — happy trading today.
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