Following dismal leads from Wall Street, the Australian share market looks set to open well into the red this morning. US stocks tumbled overnight on further fears the US Federal Reserve will hike rates next month. Many economists are saying what we’re seeing is investors making adjustments to their portfolios to account for the upcoming hike.
Global markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1 per cent to close at 17,730, the S&P 500 lost 0.98 per cent to close at 2,079 and the NASDAQ lost 1 per cent to close at 5,095.
European markets closed lower: London’s FTSE lost 0.92 per cent, Paris lost 1.5 per cent and Frankfurt retreated 1.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 1.96 per cent, Hong Kong’s Hang Seng lost 0.6 per cent, and China’s Shanghai Composite gained 1.6 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 96 points down to finish at 5,119. On the futures market the SPI is down 52 points.
Currencies
The Australian Dollar at 8:20AM was buying 70.51 US cents, 46.66 Pence Sterling, 86.86 Yen and 65.61 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is new home loans for the month of September. Economists from Commsec have predicted that the number of loans taken out may have eased by 1 per cent for the month. National Australia Bank also releases its monthly business survey for September.
Company news CBL Corporation
(ASX:CBL) is currently negotiating the purchase of leading UK tax investigation insurance provider Professional Fee Protection. The company says the acquisition will compliment CBL’s existing British business. Shares in CBL closed flat at $1.62
Ex-dividends Just one company is going ex-dividend today: Desane Group Holdings
(ASX:DGH) will pay a dividend of two cents fully franked.
Commodities
Gold has gained $3.50 to $US1,091 an ounce for the December contract on Comex.
Silver has lost 17 cents to $14.52 for December.
Copper has lost 1 cent to $2.23 a pound.
Oil has lost 42 cents to $US43.87 a barrel for December light crude in New York.
