Following negative leads from US markets, the Australian share market looks set to open lower. Diplomatic strain between China and the US following the Asian super power’s seizure of a US underwater drone triggered a market sell off on Friday. Any further escalation in tension could see more profit taking before the Christmas break, as investors look to lock in gains from the stellar post Trump lift in equities.
US economic newsBuilding permits declined by 4.7 percent in November to a seasonally adjusted rate of 1.201 million. Housing starts also fell for the month, down 18.7 percent to 1.09 million, significantly below market expectation of 1.23 million for the month.
Markets Wall Street closed lower on Friday: The Dow Jones Industrial Average closed flat at 19,843 the S&P 500 lost 0.2 per cent to close at 2,258 and the NASDAQ lost 0.4 per cent to close at 5,437.
European markets closed up: London’s FTSE rose 0.2 per cent, Paris lifted 0.3 per cent and Frankfurt gained 0.3 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng dropped 0.2 per cent, and China’s Shanghai Composite added 0.2 per cent.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 6 points down to finish at 5,533. On the futures market the SPI is 4 points down.
Currencies The Australian Dollar at 7:20AM was buying $US73.04 cents, 58.53 Pence Sterling, 86.22 Yen and 70.04 Euro cents.
Company NewsWellard Limited
(ASX:WLD) has announced it has received its first Exporter Supply Chain Assurance System approval in China from the Australian Department of Agriculture and Water Resources. The approval is the first step in Wellard’s plans to commence exporting slaughter cattle to China. Shares in Wellard Limited closed steady on Friday at $0.22
Capitol Health Limited
(ASX:CAJ) has announced the Department of Health has approved a 12 month MRI licence swap between Olympic Park in Melbourne and Mildura. The licence swap will allow for a greater number of MRI scans at Olympic Park, increasing utilisation and expanding access to bulk billed MRI services. Shares in Capitol Health Limited closed flat on Friday at $0.11.
Commodities Gold has lost $0.60 to $US1,137 an ounce for the February contract on Comex.
Silver has lost $0.075 to $16.14 for March.
Copper has fallen $0.02 to $2.55 a pound for March.
Oil has gained $0.13 to $US52.03 a barrel for January light crude in New York.
