The Australian share market is set to extend yesterday's sell-off after global markets plunged into the new week. European and US stocks slumped as investors considered a potential Greek debt default and exit from the eurozone. Monday's selling was sparked by news over the weekend Greek banks would close ahead of a Greek referendum this Sunday.
Global markets
Wall Street saw its biggest drop in two years on Monday: The Dow Jones Industrial Average retreated almost 2 per cent to close at 17,596, the S&P 500 retreated just over 2 per cent to close at 2,058 and the Nasdaq retreated 2.4 per cent to close at 4,958.
European markets tumbled on Monday: London's FTSE 100 shed almost 2 per cent, France's CAC 40 plunged 3.7 per cent and Germany's DAX plummeted 3.6 per cent.
Asian markets dropped into the red on Monday: Japan’s Nikkei fell 2.9 per cent, Hong Kong’s Hang Seng declined 2.6 per cent, and China’s Shanghai Composite decreased 3.3 per cent.
The Australian share market sank 2.2 per cent by close amid rising fears for Greece’s debt load: The S&P/ASX 200 index dropped 123 points to close at 5,422 on Monday. On the futures market the SPI is 34 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.7679, 48.82 Pence Sterling, 94.13 Yen and 68.37 Euro cents.
Economic news due out today
Reserve Bank of Australia: Financial aggregates for May
Housing Industry Association: New home sales for May
ANZ-Roy Morgan: their weekly consumer confidence survey
Company news
Telstra Corporation Limited
(ASX:TLS) has been asked to lower its wholesale internet prices under a draft decision from Australia’s competition watchdog. The Australian Competition and Consumer Commission (ACCC) has mandated a one-off uniform drop in prices of 9.6 per cent for the seven access services. Shares in Telstra Corporation fell 2.1 per cent on Monday to close at $6.07.
The ACCC has accepted an undertaking from Cabcharge Australia Limited
(ASX:CAB) to allow third parties to process the company’s branded products. The taxi payments company says this is a significant result and demonstrates Cabcharge’s strategy to engage proactively with relevant stakeholders. Shares in Cabcharge Australia fell 2.86 per cent on Monday to close at $3.73.
Ex-dividends
Hotel Property Investments Limited
(ASX:HPI) paying a 8.4 cent unfranked dividend
Thorn Group Limited
(ASX:TGA) paying a 6.75 fully franked dividend
Commodities
Gold has risen $6.40 to $US1,180 an ounce for the August contract on Comex.
Silver has dipped $0.01 to $15.76 for July.
Copper has eased $0.004 to $2.63 a pound.
Oil has lost $1.36 to $US58.27 a barrel for August light crude in New York.
Thank you for watching the Australian Share Market Outlook on Tuesday 30 of June. I’m Lelde Smits for the Finance News Network
