Further concerns over the lack of resolution between Greece and its debtors continue to weigh on US markets with stocks there retreating from initial gains to end the session slightly lower.
Transport stocks were sharply down and well into correction territory. Many analysts see transport as a barometer of the health of the general economy however most experts are still tipping a September rate rise.
Eurozone worries are expected to extend to the Australian market with the ASX eyeing a soft start. A large number of stocks are trading ex-dividend today which may also see selling across the sectors.
US economic news
The US Labor department is reporting that those who applied for unemployment benefits rose by 3,000 to 271,000 how ever layoffs remain low.
And the Commerce Department says consumer spending jumped in May, up 0.9 per cent for its largest rise in six years as consumers spent up on new cars.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to close at 17,890, the S&P 500 lost 0.3 per cent to close at 2,102 and the NASDAQ shed 0.2 per cent to close at 5,112.
European markets closed mixed: London’s FTSE slipped 0.5 per cent, Paris dropped 0.1 per cent and Frankfurt was flat.
Asian markets closed lower: Tokyo’s Nikkei slipped 0.5 per cent, Hong Kong’s Hang Seng retreated nearly one per cent, and China’s Shanghai Composite tumbled 3.5 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 54 points down to finish at 5,633. On the futures market the SPI is 6 points down.
Currencies
The Australian Dollar at 7:30AM was buying 77.39 US cents, 49.17 Pence Sterling, 95.69 Yen and 69.11 Euro cents.
Company news
Mayne Pharma Group Limited
(ASX:MYX) announced a successful US$125 million debt refinancing. The new dual currency facility is provided by two Australian banks and will mature in June 2020. The new deal will lower costs and provide more flexibility. Shares in Mayne Pharma last traded 2.37 per cent lower at $1.03.
And Folkestone Limited
(ASX:FLK) says that its 25 per cent interest in the Central Square project in West Ryde is selling like hotcakes and it expects settlement 8 months ahead of schedule with a significantly higher return than anticipated. Folkestone expects an outperformace fee of $1.5 million for the project. Other developments are also progressing well ahead of schedule. Shares in Folkestone last traded 2.38 per cent higher at $0.215.
Commodities
Gold has slipped $1.10 to $US1,172 an ounce for the August contract on Comex. Silver has dropped 5c to $15.84 for July. Copper is flat at $2.62 a pound. Oil has shed $0.63 to $US59.64 a barrel for August light crude in New York.
