Plunging commodity prices and taking oil prices combined to prompt a sell-off in the energy and materials sectors of US markets on Thursday.
Some investors are also taking comments from various Federal Reserve officials as suggesting a rate hike is imminent and could happen inDecember.
US stocks recovered from early lows but still suffered its worst session in over a month giving the Australian share market a negative lead into the final trading day of the week.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.4 per cent to close at 17,448, the S&P 500 lost 1.4 per cent to close at 2,046 and the NASDAQ lost 1.2 per cent to close at 5,005.
European markets also closed down: London’s FTSE dropped 1.9 per cent, Paris lost 1.9 per cent and Frankfurt shed 1.2 per cent.
Asian markets closed mixed: Tokyo’s Nikkei was virtually flat, Hong Kong’s Hang Seng added 2.4 per cent, and China’s Shanghai Composite slipped 0.5 per cent.
The Australian share market closed flat yesterday: The S&P/ASX 200 Index closed 3 points up to finish at 5,126. On the futures market the SPI is 69 points down.
Currencies
The Australian Dollar at 8.20AM was buying 71.28 US cents, 46.8 Pence Sterling, 87.37 Yen and 65.91 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is lending finance for September.
Company news
Starpharma Holdings Limited
(ASX:SPL) says it has received a $3.4 million R&D tax incentive relating to the research and development of various technologies including VivaGel. Shares in Starpharma closed 1.35 per cent lower yesterday at $0.73.
The Auctus Chillagoe take-over of Atherton Resources Limited
(ASX:ATE) has now reached 90 per cent acceptance and has turned compulsory. Atherton shares will cease to trade from COB on Thursday November 19. Shares in Atherton Resources ended flat yesterday at $0.20.
Ex-dividends One companies will trade ex-dividend today: Gale Pacific Limited
(ASX:GAP) will pay 1 cent with no franking.
Commodities
Gold has shed $1 to US$1,084 an ounce for the December contract on Comex. Silver is flat at $14.26 for December. Copper has shed $0.05 to $2.17 a pound. Oil has slipped $1.17 to $US43.03 a barrel for December light crude in New York.
