Following weak leads, the Australian share market looks set for a soft open. Oil prices were once again in the driving seat as a renewed slide in oil prices dragged Wall Street back into the red at market close. Concerns of a supply glut were exacerbated by US crude oil inventories data as heating oil and diesel supplies grew more than expected.
Wholesale inventories fell 0.1 percent in October. Data released by the Commerce Department came in below expectations, sales for the month were flat.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to close at 17,493, the S&P 500 lost 0.8 per cent to close at 2,048 and the NASDAQ lost 1.5 per cent to close at 5,023.
European markets closed lower: London’s FTSE lost 0.1 per cent, Paris lost just under 1 per cent and Frankfurt lost 0.8 per cent.
Asian markets closed mixed: Tokyo’s Nikkei lost 0.98 per cent, Hong Kong’s Hang Seng lost 0.5 per cent, and China’s Shanghai Composite gained 0.1 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 28 points down to finish at 5,080. On the futures market the SPI is 23 points down.
Currencies
Turning to currencies and the Australian Dollar at 8:20AM was buying $US0.7237 cents, 47.67 Pence Sterling, 87.85 Yen and 65.63 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is labour force data for November. Market consensus is tipped for a 6 percent increase in unemployment during the month.
Company news
Devine Limited
(ASX:DVN) has entered into a bid implementation agreement with CIMIC Residential Investments. Independent directors have recommended Devine shareholders accept CIMIC’s revised takeover offer of $0.81 in cash per Devine share in a takeover move. Shares in Devine closed 0.66 per cent lower yesterday at $0.75.
Eureka Group Holdings Limited
(ASX:EGH) has completed the acquisition of villages in Rockhampton, Mt Gambier 2, Bowen and Terranora. Eureka now owns 996 units comprising 17 villages and manages a total of 1,767 units. Shares in Eureka Group Holdings closed 1.82 per cent up yesterday at $0.56.
Commodities
Gold has lost $2.40 to $US1,073 an ounce for the February contract on Comex.
Silver has gained $0.02 to $14.14 for March.
Copper has gained $0.01 to $2.07 a pound.
Oil has lost $0.28 to $US37.23 a barrel for January light crude in New York.
