Local shares are poised to drop at the open as iron ore and oil extended their recent routs amid oversupply and flagging global demand.
US stocks finished lower as oil prices showed no sign of escaping their downward spiral, prompting further losses in the beleaguered energy sector.
Losses were broad in the US equity market, with eight of the 10 primary S&P 500 sectors down in morning trade. Energy was by far the weakest group, off 3.1 per cent, with the sector down more than 25 per cent from a high reached in July.
Oil slumped 5 per cent to near six-year lows, accelerating its months-long rout after Goldman Sachs slashed its short-term price forecasts and Gulf producers showed no signs of curbing output.
- SPI futures down 50pts at 5335
- AUD at 81.66 US cents
- In late trade, S&P 500 -0.9%, Dow -0.7%, Nasdaq -1%
- In Europe, Stoxx 50 +1.4%, FTSE flat, CAC +1.2%, DAX +1.4%
- Spot gold up $US11.60 or 1% to $US1234.85 an ounce
- Brent oil down $US2.64 or 5.3% to $US47.47 per barrel
- Iron ore down 88 US cents at $US70.30 a tonne
What’s on today
China trade data for December; UK CPI, PPI, retail price index; US Federal budget statement.
Stocks to watch
Energy shares, iron ore producers.
Australian bank profit growth is likely to be slowed down this year by higher bad debt charges and hot competition for customers, a new report from Fitch Ratings says, according to the Australian Financial Review.
Credit Suisse has an ‘underperform’ rating on Goodman Group and a $5.81 target price.
Charlie Aitken of Bell Potter Securities has upgraded his target price on Telstra to $7.00 from $6.40.