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Australian shares are expected to ease slightly when trade opens today after US stocks declined for a second day and fears about Spain again pushed European markets sharply lower.
On the ASX24, the SPI futures index was 5 points lower to 4085. The Aussie dollar was lower against the greenback and the euro. The local unit is back below $US1.03 after trading above $US1.043 last Friday, while it has eased to 84.7 euro cents after touching a record high of 85.4 yesterday.
Investor sentiment focussed on Spain overnight as the nation’s 10-year bonds slumped to a euro-era high on speculation that more regions will follow Valencia in asking for financial aid, increasing concern the country will need a sovereign bailout.
Making news today
In economics news:
- Reserve Bank of Australia governor Glenn Stevens speech to the Anika Foundation lunch
In company news:
- Atlas Iron June quarter report
- Alesco Corp full year results
- Metminco June quarter activity report
Analyst rating changes:
- Navitas raised to 'outperform' at Credit Suisse
How we fared yesterday
Australian shares posted their worst day in seven weeks as renewed fears about Spain's debt woes sapped buying interest.
The benchmark ASX200 index shed 70.2 points, or 1.67 per cent, to 4,128.9, while the broader All Ordinaries index lost 71.4 points, or 1.69 per cent, at 4,159.2. The losses wiped more than $21 billion in value from the market's value in the sharpest drop since June 4.
BusinessDay with agencies
