Market insiders are tipping the Australian sharemarket to open lower today following weak overseas leads, despite closing in positive territory for the first time in 2016 in yesterday’s session. Shares on Wall Street fell to their lowest level since September, pulled down by weakness in the oil price with consumer discretionary stocks leading declines.
Market
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 2.2 per cent to close at 16,152, the S&P 500 lost 2.5 per cent to close at 1,890 and the NASDAQ lost 3.4 per cent to close at 4,526.
European markets closed mixed: London’s FTSE gained 0.5 per cent, Paris gained 0.3 per cent and Frankfurt lost 0.25 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 2.9 per cent, Hong Kong’s Hang Seng X gained 1.1 per cent, and China’s Shanghai Composite lost 2.4 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 62 points up to finish at 4,987. On the futures market the SPI is 91 points down.
Currencies
The Australian Dollar at 8:20AM was buying $US0.6957 cents, 48.24 Pence Sterling, 81.88 Yen and 64.01 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is labour force figures for December. Unemployment is expected to rise to 5.9 percent from 5.8 percent in November.
Company news
Dick Smith Holdings Limited
(ASX:DSH) administrators are set to meet in Sydney today with those owed money by the electronics retailer. The retailer possesses debts of up to $390 million. The meeting will determine whether to appoint a committee of creditors and if so, who are to be the committee’s members. Shares in Dick Smith Holdings last traded at $0.36.
National Australia Bank Limited
(ASX:NAB) has sold down stakes in several companies. The lender ceased to be a substantial holder in Fairfax Media, Healthscope Limited and AWE. Shares in NAB closed 1.21 per cent up yesterday at $27.68.
Commodities
Gold has gained $8.30 to $US1,094 an ounce for the February contract on Comex.
Silver has gained $0.40 to $14.15 for March.
Copper is flat at $1.96 a pound.
Oil has gained $0.02 to $US31.54 a barrel for February light crude in New York.
