Following weak leads on US and Asian markets and a slew of disappointing economic data, the Australian share market is set for a weak open this morning.
The Chinese yuan fell to its lowest level against the dollar in almost three years, after a near-2 percent devaluation by Beijing. This subsequently sent US oil prices to their lowest level in more than six years and to make matters worse for the energy space, OPEC says production levels of oil have reached three year highs.
Global markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.2 per cent to close at 17,403, the S&P 500 lost 1 per cent to close at 2,084 and the NASDAQ lost 1.3 per cent to close at 5,037.
European markets closed lower: London’s FTSE lost 1 per cent, Paris retreated nearly 2 per cent and Frankfurt was down 2.7 per cent.
Asian markets closed lower: Tokyo’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng lost 0.1 per cent, and China’s Shanghai Composite was flat.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 36 points lower to finish at 5,473. On the futures market the SPI is down 28 points.
Currencies
Turning to currencies and the Australian Dollar at 7:20AM was buying 73.05 US cents, 46.92 Pence Sterling, 91.42 Yen and 66.17 Euro cents.
Economic news
We’ll see the release of the monthly consumer confidence survey for August from Westpac and the Melbourne Institute. It’s expected that confidence levels have improved. Also released today is the wage cost index for the June quarter. Wages are forecast to have grown by 0.7 per cent in the quarter. The RBA will also release the latest data on credit and debit card lending and RBA Deputy Governor Phillip Lowe will make a speech later today.
Company news All eyes will be on the Commonwealth Bank of Australia
(ASX:CBA) this morning, as it releases its annual profit results. Analysts have predicted full-year earnings of about $9.15 billion, the largest ever for an Australian bank.
Shares in Commonwealth Bank of Australia
(ASX:CBA) closed down 0.02 per cent at $82.12.
Greencross Limited
(ASX:GXL) has reported a net profit of $19.1 million in the 12 months to June 30 and an increase in revenue of 75 per cent.This is compared to a loss recorded by the integrated pet services company of $127.8 million last financial year on revenue of $368.9 million.
Shares in Greencross Limited
(ASX:GXL) closed 14.38 per cent higher yesterday at $6.84.
Ex-dividends
Two companies are going ex-dividend today, Managed Accounts Holdings (ASX: MGP) will pay 0.2 cents unfranked and Rio Tinto
(ASX:RIO) will pay $1.45 fully franked.
Commodities
Gold is up $4.30 to $US 1,108 an ounce for the December contract on Comex.
Silver has gained 3 cents to $15.32 for September.
Copper has lost 6 cents to $2.34 a pound.
Oil has lost $1.75 to $US43.21 a barrel for September light crude in New York.
