The Australian sharemarket looks set for a negative open. The local bourse broke its three-day winning streak yesterday following heavy losses in the financials space. Shares on Wall Street fared no better overnight, dropping sharply as the US Federal Reserve failed to rule out a March interest rate hike.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 1.4 per cent to close at 15,944, the S&P 500 lost 1.1 per cent to close at 1,883 and the NASDAQ lost 2.2 per cent to close at 4,468.
European markets closed up: London’s FTSE gained 1.3 per cent, Paris gained 0.5 per cent and Frankfurt gained 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 2.7 per cent, Hong Kong’s Hang Seng gained 1 per cent, and China’s Shanghai Composite lost 0.5 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 60 points down to finish at 4,946. On the futures market the SPI is 30 points down.
Currencies
The Australian Dollar at 8:40AM was buying $US0.7025 cents, 49.37 Pence Sterling, 83.34 Yen and 64.51 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is import prices for the December quarter.
Company news
Fonterra Co-operative Limited
(ASX:FSF) has reduced its forecast Farmgate Milk price for the 2015/16 season from $4.60 per kgMS to $4.15 kgMS. Chairman John Wilson said global economic conditions continue to be challenging and are impacting demand for a range of commodities, including dairy. Shares in Fonterra Co-operative closed 1.11 per cent up yesterday at $5.46.
Air New Zealand Limited
(ASX:AIZ) announced it carried 1.5 million passengers during the month of December, 5.8 percent for than the same period last year. Passenger demand on routes to Asia/Japan/Singapore received a boost from the new Auckland-Singapore route, increasing by 41.5 percent. Shares in Air New Zealand closed 5.02 per cent lower yesterday at $2.84.
Ex-dividends
2 companies are going ex-dividend today: Djerriwarrh will pay 10 cents fully franked. Meanwhile Regis Resources will pay 4 cents fully franked.
Commodities
Gold has gained $5.50 to $US1,126 an ounce for the February contract on Comex.
Silver has lost $0.07 to $14.49 for March.
Copper has gained $0.02 to $2.06 a pound.
Oil has gained $0.65 to $US32.10 a barrel for February light crude in New York.
