Following dismal leads from Wall Street, the Australian share market looks set to open well into negative territory this morning. US stocks are on track for their worst quarter in four years as investors sold off once again on fears of an economic slowdown in China.
To US economic news, there are further indications that the US housing market is losing momentum. According to the National Association of Realtors, pending home sales fell 1.4 percent in August compared to July. Economists had been forecasting a slight increase. But despite the current economic uncertainty, personal spending increased 0.4 per cent in August, according to the Commerce Department.
Global markets
Wall Street closed sharply lower yesterday: The Dow Jones Industrial Average lost 1.9 per cent to close at 16,002, the S&P 500 lost 2.6 per cent to close at 1,882 and the NASDAQ lost 3 per cent to close at 4,544.
European markets closed lower: London’s FTSE lost 2.5 per cent, Paris lost 2.8 per cent and Frankfurt retreated 2.1 per cent.
Asian markets closed mixed: Tokyo’s Nikkei lost 1.3 per cent, Hong Kong’s Hang Seng was closed due to a public holiday and China’s Shanghai Composite gained 0.3 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 71 points higher to finish at 5,113. On the futures market the SPI is down 104 points.
Currencies
Turning to currencies and the Australian Dollar at 7:20AM was buying 69.86 US cents, 46.08 Pence Sterling, 83.79 Yen and 62.13 Euro cents.
Company news St Barbara Limited
(ASX:SBM) has bought back an additional US$10 million of secured notes at a 7 per cent discount. The gold miner says it will continue to reduce debt with surplus cash as the opportunity arises. Shares in St Barbara closed 2.73 per cent higher yesterday at 94 cents.
Ex-dividends
Six companies are going ex-dividend today: Fantastic Holdings, Imperial Pacific, London City Equities, McMillan Shakespeare, SG Fleet Group and Traditional Therapy.
Commodities
Gold has lost $13.90 to $US1,132 an ounce for the December contract on Comex.
Silver has lost 55 cents to $14.56 for December.
Copper has dropped 3 cents to $2.25 a pound.
Oil has slipped $1.27 to $44.43 US a barrel for November light crude in New York.
