Following negative leads, the Australian share market looks set to open lower. US markets closed down on Thursday as skittish investors continued to struggle to make sense of the country’s political mood. Market volatility is on the increase, with its key measure, the VIX, increasing by over 21 percent in recent days. While economic data continues to show more positive signs than weak, markets are likely to remain choppy until the outcome of next Tuesday’s election is known.
US economic newsInitial jobless claims rose last week to 265,000, jumping by 7000 on the prior week. The ISM Non-Manufacturing PMI index fell to 54.8 in October, dropping off from a 57.1 read in September. Labor productivity however was on the increase in Q3, increasing by 3.1 percent and beating an expected jump of only 2 percent.
MarketsWall Street closed lower yesterday: The Dow Jones Industrial Average fell 0.2 per cent to close at 17,931, the S&P 500 lost 0.4 per cent to close at 2,089 and the NASDAQ dropped 0.9 per cent to close at 5,058
European markets closed lower: London’s FTSE fell 0.8 per cent, Paris lost 0.1 per cent and Frankfurt slipped 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng lost 0.6 per cent, and China’s Shanghai Composite gained 0.8 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 3 points down to finish at 5,226. On the futures market the SPI is 25 points down.
Currencies The Australian Dollar at 7:20AM was buying $US76.85 cents, 61.68 Pence Sterling, 79.11 Yen and 69.19 Euro cents.
Economic news Due out today from the Australian Bureau of Statistics are monthly retail sales figures for September. The Reserve Bank will also release its Statement on Monetary Policy.
Company newsLatAm Autos Limited
(ASX:LAA) has announced it has executed an agreement to become the exclusive distributor of CarSync hardware devices and software in Latin America. CarSync is an electronic device which when installed in vehicles generates continuous data on client behavior. Along with a one-time installation and annual renewal fee, LatAm will generate recurring revenues by providing distribution, administrative processing and invoicing services through its software platform. Shares in Latam Autos Limited closed steady yesterday at $0.22.
Austin Engineering Limited
(ASX:ANG) has announced it expects it will breakeven in its trading result for the first half of the financial year, on an underlying basis. However the company has indicated a strong order book and pipeline should see it deliver a trading result in the second half over and above its prior full year result. The company has secured three significant contracts in its Australian operations and has a large number of tenders under assessment. Shares in Austin Engineering Limited closed 11.76 per cent up yesterday at $0.19.
Ex-dividends1 company is going ex-dividend today: National Australia Bank Limited
(ASX:NAB) will pay 99 cents fully franked.
CommoditiesGold has dropped $3.60 to $US1,305 an ounce for the December contract on Comex.
Silver has lost $0.34 to $18.36 for December.
Copper has gained $0.01 to $2.24 a pound for December.
Oil has fallen $0.95 to $US44.63 a barrel for December light crude in New York.
