With losses in the US and Europe the local market looks set to open lower and extend a week of losses. Greek debt negotiations have weighed on sentiment overnight as the increasingly indebted country looks set to delay its repayments to the IMF until the end of the month.
The Aussie dollar headed lower again overnight on the back of yesterday’s poor retail trade figures and a record trade deficit that showed slowing exports in April.
Attention tonight will turn to US non-farm payroll figures, these numbers are keenly watched as they’re a key read for the Federal Reserve policy makers in deciding whether it’s time to lift interest rates. Expectations are for a moderate improvement in employment.
Global figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.9 per cent to close at 17,906, the S&P 500 is down 0.9 per cent to close at 2,096 and the NASDAQ pushed 0.8 per cent lower to close at 5,059.
European markets closed lower: London’s FTSE lost 1.3 per cent, Paris is down 0.9 per cent and Frankfurt gave up 0.7 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.07 per cent, Hong Kong’s Hang Seng is down 0.4 per cent, and China’s Shanghai Composite gained 0.8 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 79 points down to finish at 5,504. On the futures market the SPI is 17 points up/down.
Turning to currencies and the Australian Dollar at 7:30AM was buying $US0.7686 cents, 50.06 Pence Sterling, 95.61 Yen and 68.44 Euro cents.
Company news
Stockland Limited
(ASX:SGP) will pay $75.8 million for a portfolio of eight retirement villages in South Australia to boost its retirement investment. The property developer says the deal with Masonic Homes involves 980 homes with a development pipeline of at least 130 more. Stockland says it’s part of a capital recycling program to sell non-core property and target assets with higher returns. Shares in Stockland closed 2.09 per cent lower yesterday at $4.22
Aurizon Holdings Limited
(ASX:AZJ) has reached in principal agreement with unions on a new enterprise agreement for train crew and transport operators in Queensland. The company says the agreement is not yet binding and is subject to final drafting with a formal ballot to be held in July to decide on the agreement. The proposal includes a four per cent pay increase each year for three years in return for productivity enhancements and more work flexibility plus the removal of the no forced redundancy provision. Shares in Aurizon closed flat at $5.18
Commodities
Gold has lost $9.70 to $US1,175 an ounce for the August contract on Comex.
Silver has lost $0.38 to $16.10 for July.
Copper has lost $0.04 to $2.69 a pound.
Oil has given up $1.64 to $US58.00 a barrel for July light crude in New York.
