Outlook: Aus shares set to open lower

Market Reports

Following dismal leads from overseas markets, the local share market is set for another horror trading day, with the S&P/ASX200 to fall below the 5000 point level.
 
Wall Street has had its biggest decline since 2011, closing 3.58 per cent lower. The Australian share market also had its worst day since the GFC yesterday, with more than $60 billion erased as investors sold-off the blue chips on the back of global economic fears and a tumbling Chinese market.  
 
However, US economic news paints a more positive picture for the state of the US economy. The national activity index for the month of July from the Chicago Fed swung back into positive territory, indicating above-trend growth last month. The index rose to 0.34 in July from negative 0.07 in June.
 
Global markets

Wall Street closed significantly lower yesterday: The Dow Jones Industrial Average crashed 3.6 per cent to close at 15,871, the S&P 500 lost 3.9 per cent to close at 1,893 and the NASDAQ lost 3.8 per cent to close at 4,526.
 
European markets closed lower: London’s FTSE tumbled 4.7 per cent, Paris plummeted 5.4 per cent and Frankfurt slipped 4.7 per cent.
 
Asian markets closed lower: Tokyo’s Nikkei lost 4.6 per cent, Hong Kong’s Hang Seng shed 5.2 per cent, and China’s Shanghai Composite crashed 8.5 per cent.
 
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 213 points lower to finish at 5,001. On the futures market the SPI is down 181 points. 

Currencies
 
The Australian Dollar at 7:20AM was buying 71.56 US cents, 45.4 Pence Sterling, 84.82 Yen and 61.67 Euro cents.

Economic news
 
Due out today from the Australian Bureau of Statistics is a preliminary quarterly reading on goods and services trade. We’ll also see the release of the usual weekly consumer confidence read by ANZ and Roy Morgan. 

Company news
 
BHP Billiton Limited (ASX:BHP) is expected to have halved its earnings for the full year to June 30 when it reports after the market closes this afternoon. The mining giant is expected to report underlying earnings of about $US6.6 billion, down from $US13.4 billion a year earlier. The result will be driven by the plunging price of commodities, particularly iron ore. Shares in BHP Billiton closed 5.02 per cent lower yesterday at $22.89.  
 
Patties Foods Limited (ASX: PFL) has lost 88 per cent of its full year profit, after a hepatitis A outbreak allegedly linked to its Nanna’s brand frozen berries earlier this year. The frozen food company reported a net profit of just $2.1 million for the 2015 financial year, compared to $16.7 million last year. The company will pay a final dividend of 5 cents per share fully franked. Shares in Patties Foods closed 4.42 per cent higher yesterday at $1.18.  
 
Commodities

Gold has lost $5.20 to $US1,154 an ounce for the December contract on Comex. Silver has lost 56 cents to $14.79 for September. Copper has slipped 6 cents to $2.24 a pound. Oil has lost $2.39 to $US38.06 a barrel for September light crude in New York.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?