The ASX was down 46.5pts, or 0.80 per cent, at 5645.7pts on Thursday. US markets fell again after disappointing jobs data and a warning from Fed Chair Janet Yellen concerning high equity valuations. The US losses sent ripples through international markets, including Australia. The ASX fell sharply in the opening minutes of trading, but partially recovered soon after. The Utilities and Metals and Mining sectors led the selloff, falling 2.2 and 1.43 per cent respectively. The Australian dollar has been making gains over the past few days. After briefly rising above $0.80, it retreated later in the day and is floating around $0.7987 as of 4:30pm (AEST).
In the US, the Dow Jones was down was down .48 per cent and the S&P 500 was down .45 per cent. In Europe, the DAX was up .20 per cent and the FTSE 100 was up .09 per cent. The Nikkei 225 has more than wiped out the previous three days of marginal gains, falling 1.17 per cent near the end of trading on Thursday. The Chinese market has also joined the selloff, with the Hang Seng falling .89 per cent while the Shanghai Composite is down 1.91 per cent so far on Thursday.
Caltex Australia (ASX:CTX) was down 40c, or 1.16 per cent, at $34.00 per share. The company announced a significantly improved profit of $162m for the March quarter, compared to the $96m profit from the previous corresponding period.
Rio Tinto (ASX:RIO) was down 58c, or .98 per cent, at $58.54 per share. Rio’s Chief Executive Sam Walsh has defended the company’s iron ore expansion, saying it is not to blame for the falling price of the commodity.
Fairfax Media Limited (ASX:FXJ) was up 2c, or 1.99 per cent, at $1.03 per share. Fairfax has partially recovered from significant losses during yesterday’s trading. The company reported a 1 per cent increase to revenue and shares fell over 4 per cent.
National Australia Bank (ASX:NAB) shares were suspended from trading today. NAB released a plethora of announcements on Thursday, including its half-year results, which showed a marginal 5.4 per cent increase in profits. It also announced a $5.5bn demerge plan for its troubled UK business.
Author: Matthew Dibb
May 07, 2015
Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.