ASX
An investor is reflected in a window as he looks at boards displaying stock prices and an advertisement for zero percent interest rate for purchasing a car at the Australian Securities Exchange in central Sydney, Australia, July 8, 2015. Reuters/David Gray
  • Australian shares finished off their lows however still lost ground for the second day. The ASX 200 index slipped by 0.6 per cent after falling by as much as 1.1 per cent earlier. Despite dropping below the key 5200pt level on Tuesday, the index managed to claw its way back to end at 5202.9.
  • Woolworths (WOW) rose by 0.8 per cent despite news that the supermarket chain and Lowe’s will inject $105m (combined) into the struggling Masters home improvement business. WOW is expected to spend $70m and Lowe’s the rest. Masters could lose ~$200m over the next year and is unlikely to breakeven for at least five years.
  • Telstra (TLS) fell 0.9 per cent and held its AGM with investors. Australia’s sixth biggest business expects the ACCC’s decision to order cuts in prices it charges other telcos to use its copper network could cost TLS $80m. The telco could launch an appeal against the competition watchdog.
  • Energy stocks struggled most following a 5.1 per cent slump in the oil price. Santos (STO) was hit harder than most, slipping 6.2 per cent and said it will cut another 200 jobs as part of its plan to slash costs by $100m over three years. Fortescue (FMG) lost 8.7 per cent after last week’s 24 per cent surge.
  • China posted a bigger than expected trade surplus in September, thanks to a slower than expected decline in exports out of China. Imports fell by a greater than anticipated 17.7 per cent. Businesses were more confident in September than August according to a monthly survey.
  • 2.1bn shares were traded today, worth $5.4bn. 416 stocks rose, 533 fell and 324 ended flat. Johnson & Johnson, Intel and CSX will be releasing profit results in the US tonight. Greece faces its deadline to pay the IMF €447 in loans and the first democratic debate in the US 2016 presidential race will be held.

Steven Daghlian - Market Analyst (Author)
CommSec

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