The Australian share market is eyeing a soft start to the session after receiving negative global leads. Concerns about Greece’s stalled debt talks with its creditors continued to put pressure on equity markets. US stocks also absorbed economic data showing declining industrial production but better than expected housing data. The Australian dollar is trading higher in response while the price of iron ore has fallen under $US65 per tonne.
Wall Street started the week in the red: The Dow Jones Industrial Average dipped 0.6 per cent to close at 17,791, the S&P 500 slipped 0.5 per cent to close at 2,084 and the Nasdaq fell 0.4 per cent to close at 5,030.
European markets moved lower on Monday: London's FTSE 100 retreated 1.1 per cent, France's CAC 40 slid 1.8 per cent and Germany's DAX declined 1.9 per cent.
Asian markets sank into the new week: Japan’s Nikkei dipped 0.1 per cent, Hong Kong’s Hang Seng dropped 1.5 per cent, and China’s Shanghai Composite plunged 2 per cent.
The Australian share market recovered most of Monday’s losses to end only 0.1 per cent lower yesterday. The S&P/ASX 200 index lost 6.48 points by close to end at 5,539. On the futures market the SPI is 3 points lower.
The Australian dollar at 7:30am was buying $US0.7761, 49.78 Pence Sterling, 95.86 Yen and 68.82 Euro cents.
Economic news due out today
Reserve Bank of Australia: Minutes from the June board meeting
ANZ Banking Group-Roy Morgan: Weekly consumer confidence survey
Australian Bureau of Statistics: New vehicle sales for May
A consortium including Lend Lease Group (ASX:LLC)
has finalised a resolution for the East West Link project in Victoria. The property group was planning to work on the road tunnel project before it was suspended by the state government. While the company’s construction backlog revenue will now be lowered by about $1.4 billion Lend Lease does not anticipate any material impact to its FY15 earnings. Shares in Lend Lease Group firmed 0.06 per cent yesterday to close at $15.89.
ASG Group Limited (ASX:ASZ)
has advised it is positioned for growth in New South Wales with more than $15 million in new contracts. The provider of information technology services says the new contracts follow recent announcements of wins in Western Australia and Canberra. CEO Geoff Lewis believes ASG’s foresight into adopting a new world strategy is now coming into fruition. Shares in ASG Group rose 2.29 per cent yesterday to close at $0.895.
Gold has gained $6.50 to $US1,185.50 an ounce for the August contract on Comex.
Silver has risen $0.21 to $16.04 for July.
Copper has lost $0.03 to $2.65 a pound.
Oil has fallen $0.30 to $US60.10 a barrel for July light crude in New York.