Australian stocks fell, dragged down by the miners.
- ASX 200: 5,836.70 -53.25 -0.90%
- All Ordinaries: 5,868.70 -57.17 -0.96%
- AUD/USD: 0.7554 -0.0037 -0.49%
The local market fell again, wiping out last week’s gains, despite a positive result on Wall Street overnight where the S&P500 closed 0.9% higher.
The miners again led the rout as iron ore prices fell further. Rio Tinto dropped 1.9% to $58.00, BHP 1.5% to $23.93 and pure play iron ore miner Fortescue Metals 7.4% to $5.09.
The major banks also dipped with the Commonwealth down 0.8% to $85.51 and the ANZ 0.75% to $31.66.
Gold miner Newcrest Mining was down 4.5% to $23.98 aftre announcing its Cadia operation near Orange NSW isn’t expected production guidance for 2017 due a “seismic event”.
Telstra is down another 3.8% to $4.00 after last week’s announcement that competitor TPG Telecom plans to build its own mobile phone network. The shares ahve fallen more than 12% since last Wednesday.
The top stories:
1. 457 visas are gone. Malcolm Turnbull axes the program for skilled migration, saying he’s putting Australians first. Also read: Almost 1.3 million people have come to Australia on 457 work visas over the last 20 years.
2. A leading startup CEO says abolishing 457 visas could drive companies away. The Australian tech and startup community has mostly reacted negatively to Turnbull’s announcement.
3. Venture capital firm TCV just bought a $26.4 million stake in Xero. The US firm and Google Capital last year led a $555 million funding round for Airbnb.
4. eBay is looking at geoblocking Australians. eBay says the coming 10% GST on goods bought from foreign sellers may force the online platform to block Australians buying overseas.
5. Australia’s poorest have taken to negative gearing. A combination of record low interest rates and increasingly unaffordable housing in the eastern states have pushed low income families to take a chance on property investment.
6. TPG Telecom shares were squashed. The company came out of a trading halt after a capital raising to help finance its plans for a fourth mobile phone network. Its shares fell 17.4% to $5.50.
7. The latest bumper jobs report wasn’t as strong as it seems. Macquarie Bank says employment data for March was incredibly, and suspiciously, strong.
8. Black Swallow will pay Showpo $60,000. It comes after Showpo alleged its former graphic designer downloaded the company’s customer database of 306,000 records and gave it to their new employer Black Swallow.
9. The new player in the race to build a flying car. The CityHawk actually looks like a car.