The Australian share market looks set to open lower on this Wednesday, following negative overseas leads. Uncertainty over US Fed policy continued to fuel skittish global markets overnight, as Wall St tumbled more than 1 percent into the close. European sharemarkets were also dragged lower by a broad-based selloff in commodity-related stocks. The slip in commodities pressured the Australian Dollar to fall below US71c in offshore trade.
US economic news
The Richmond Fed Index turned negative in September. Current business conditions slipped to -5, marking a sharper-than-expected decline in activity for manufacturers.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.1 per cent to close at 16,330, the S&P 500 lost 1.2 per cent to close at 1,943 and the NASDAQ lost 1.5 per cent to close at 4,757.
European markets closed lower: London’s FTSE lost 2.8 per cent, Paris lost 3.4 per cent and Frankfurt lost 3.8 per cent.
Asian markets closed mostly higher: Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng gained 0.2 per cent, and China’s Shanghai Composite gained 0.9 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 37points up to finish at 5,104. On the futures market the SPI is 66 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US0.7085cents, 46.13 Pence Sterling, 85.09 Yen and 63.67 Euro cents.
Company news
BHP Billiton Limited
(ASX:BHP) is considering the issuance of multi-currency hybrid capital instruments. BHP announced plans for a global debt investor marketing push across Europe, Asia and the US later this month. The miner emphasized the use of hybrid capital instruments would allow it to diversify its investor base and create a more flexible balance sheet. Shares in BHP Billiton closed 0.04 per cent up yesterday at $23.86.
South32 Limited
(ASX:S32) subsidiary TEMCO will ‘review its options’ following an anti-dumping investigation by the US Department of Commerce. Under a preliminary ruling imports of Silicomanganese of Australian origin have been restricted to a rate of 11.93 percent. South32 has said it is disappointed with the imposition of the preliminary methods and that TEMCO intends to defend its position. Shares in South32 closed 1.35 per cent up yesterday at $1.50.
Commodities
Gold has lost $8.00 to $US1,125 an ounce for the December contract on Comex
Silver has lost $0.49 to $14.73 for December
Copper has lost $0.09 to $2.30 a pound
Oil has lost $0.60 to $US46.36 a barrel for October light crude in New York.
