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Category: Stockmarket / Currency / Futures / Markets

US shares fall despite oil bounce

Wednesday, 6 Apr 2016 06:36:40 | Thuy Ong

Global markets have now given up much of their March rally. (Jessica Rinaldi: Reuters)

Wall Street has closed lower, with investors selling out of stocks ahead of a quarterly reporting season that is expected to reveal disappointing earnings.

What you need to know:

  • Watch Westpac share price after it joins ANZ in being sued by regulator for alleged interest rate rigging
  • Volatility index jumped 8.5 per cent overnight; still below average, watch for further rise
  • Oil prices tick up, Brent at $US38.33, but key US oil stock data out tonight
  • Minutes from the last US Federal Reserve meeting also out tonight

The Dow Jones Industrial Average fell 0.8 per cent to 17,603.

The Nasdaq dropped 1 per cent to 4,844, while the S&P 500 also lost 1 per cent to 2,045.

The International Monetary Fund's managing director Christine Lagarde has warned of increasing risks to global economic growth unless policy makers take stronger measures.

"Let me be clear: we are on alert, not alarm. There has been a loss of growth momentum," Ms Lagarde said in her prepared remarks.

"However, if policymakers can confront the challenges and act together, the positive effects on global confidence - and the global economy - will be substantial."

Overnight, European shares dropped to a six-week low, with mining and auto stocks weighing.

In London, the FTSE 100 lost 1.2 per cent to hit a three-week low, the German DAX tumbled 2.6 per cent, while France's CAC 40 dived 2.2 per cent.

Locally, shares are set to slip at the open, with the ASX SPI 200 down 0.4 per cent to 4,889.

Meanwhile, Westpac has become the second major bank after ANZ to be hauled into courts by ASIC over allegations of a multi-billion dollar rigging of interest rate trading between April 2010 and June 2012.

Westpac said it would vigorously defend the court proceedings.

Checking currencies, the Australian dollar has lost 0.9 per cent, a short time ago it was worth 75.3 US cents.

The dollar dropped after the Reserve Bank of Australia yesterday kept interest rates on hold at a record low of 2 per cent.

Against other currencies, it was buying 83.1 Japanese yen, 53.2 British pence, 66.2 euro cents and $NZ1.11.

On commodities markets, spot gold dipped to $US1,230 an ounce.

West Texas crude gained half a per cent to $35.89 US a barrel after Kuwait insisted major producers will agree to freeze output later this month.

AustraliaPlus


 

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