The US share market lost 2.56% overnight, despite a Fed rate just cut two days ago. Westpac Bank announced a record full-year profit. Newcrest Mining is looking around the globe for small, quality long-term gold miners to buy. Chinese steel-makers can’t get enough of Australian iron ore developer Fortescue. Crude oil hit US$96 in the last trading session, on a weaker US dollar. And the Aussie dollar keeps rising against the greenback.
All the details below…
Wall St pummelled on economic worries
US shares dropped sharply overnight. The market lost 2.56%, led down by Exxon-Mobil (NYSE:XOM) and Citigroup (NYSE:C). This all happened despite a US$41 billion cash injection by the US Federal Reserve.
Westpac turns in a record year
Westpac (ASX:WBC) made a record net profit of AU$3.5 billion in the year ended September 30. Analysts were predicting a lower result. Westpac’s shares rose 1.7%.
Newcrest Mining has four targets on radar
Gold miner Newcrest (ASX:NCM) is looking for acquisition targets. It freed up some cash by reversing its hedged gold positions earlier this year. The company is now looking for international gold firms.
Fortescue finds favour in China
Iron-hungry Chinese steel-makers have turned to Fortescue (ASX:FMG). Chinese companies are unsatisfied with the speed at which BHP (ASX:BHP) and Rio Tinto (ASX:RIO) are developing Australia’s iron trade. Fortescue is forecasting its annual production will top 55 million tonnes from May of next year.
Crude Oil Settles Lower
Oil prices topped US$96 yesterday before easing off to finish below US$94. The decline in the US dollar is pushing prices higher. And lower output from Mexican producers isn’t helping.
Aussie dollar hits new high
The Australian dollar hit a 23-year high, at US$0.9345. Analysts expect Australian interest rates to continue rising, driving the Aussie currency up.
All the best,
Al Robinson
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Overnight Market News