Australian shares head for a 0.3% drop at open, with Brent crude crashing 10% and US tech weakness spilling over. Whitehaven, Iluka report; Evolution buys Carnaby.
Australian shares are set to open lower Tuesday, with the ASX 200 pointing to a 0.3% decline around 8,820 points. The selloff follows weakness in US tech stocks and a sharp drop in Brent crude.
Wall Street was mixed overnight. The Nasdaq slipped 0.2% while the S&P 500 and Dow edged higher. London and Tokyo posted gains. The local market is under pressure from the resource sector's quarterly updates and a broader commodity retreat.
Whitehaven Coal and Iluka Resources are among the first to report this morning. Sandfire, Capstone Copper, Rio Tinto, and BHP Group remain in focus as the materials-heavy reporting season continues. BHP Group, with an Alpha Score of 71 out of 100, is rated moderate in the basic materials sector.
Evolution Mining agreed to acquire Carnaby Resources in a $213 million all-scrip deal. Carnaby shares surged 57% on the news.
Fortescue boss Andrew Forrest urged China to “negotiate fairly” amid ongoing trade tensions. Myer reported flat sales of about $4 billion for the financial year, with a strong May followed by a June-July slump.
Perpetual received another takeover approach from EQT worth $1.78 billion.
In currencies, the Australian dollar bought 69.8 US cents.
Brent crude fell 10% to $87.75 a barrel, extending a recent rout on demand concerns, traders said. Iron ore slipped 0.5% to $97.60 a tonne in Singapore. US natural gas futures dropped to $2.73 per gigajoule.
For more on BHP's recent performance, see our analysis.
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