The Australian share market looks to open lower this morning after world markets closed in the red overnight amid growing concerns about Europe's sovereign debt crisis and disappointing corporate earnings reports in the US.
US economic news
The Richmond Federal Reserve said manufacturing activity in the central-Atlantic region continued to contract in July, coming in at minus 17, the lowest level since April 2009.
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 104 points to close at 12,617, the S&P500 lost 12 points to close at 1,338 and the Nasdaq lost 27 points to close at 2,863.
European markets closed lower: London’s FTSE lost 35 points, Paris lost 27 and Frankfurt shed 29 points.
Asian markets closed mixed: Hong Kong’s Hang Seng lost 150 points, Tokyo’s Nikkei shed 20 and China’s Shanghai Composite added 5 points.
The Australian share market closed slightly higher yesterday: The S&P/ASX 200 Index closed 4 points up to finish at 4,133. On the futures market the SPI is 31 points down.
The Australian Dollar at 7:15AM was buying $US1.023, 65.97 Pence Sterling, 79.97 Yen and 84.8 Euro cents.
Due out today from the Australian Bureau of Statistics is the consumer price index for the June quarter.
National Australia Bank Limited (ASX:NAB) will raise interest rates on some of its business loans by the end of the month. The liquidity margin on business lending will rise by 20 basis points. Australia's fourth largest bank says higher costs of funding and global economic conditions have contributed to the rise. Shares in NAB closed 0.13 per cent lower yesterday at $23.66.
Tabcorp Holdings Limited (ASX:TAH) will receive a $14.3 million GST refund that will be recorded in its half year accounts. The GST which was paid by its Victorian and NSW businesses, relate to wagering turnover from overseas based customers. Shares in Tabcorp closed 0.32 per cent up yesterday at $3.15.
Tomorrow: Century Australia Investments Limited (ASX:CYA) with a 1.4 cent fully franked dividend.
Gold is down $1.20 to $US1,576 an ounce for the August contract on Comex.
Silver is down $0.23 to $26.81 for September.
Copper is down $0.03 at $3.35 a pound.
Oil is up $0.36 at US$88.50 a barrel for August light crude in New York.