The Australian share market looks set to open lower this morning after U.S. markets closed in the red.
Wall Street closed lower in a choppy session as economic reports showed rising inflation and a mixed outlook for manufacturing.
The Commerce Department said that wholesale prices rose more than expected as the Producer Price Index rose 1.8% in November.
The Empire Manufacturing index showed that manufacturing in the New York area slumped in December to 2.55, missing forecasts for a rise to 24.
U.S. bank stocks were the major drag on the market as the financial sector was sold off.
The Federal Reserve started their two-day policy meeting and will announce a decision on interest rates tomorrow.
The U.S. dollar strengthened as concerns about debt-ridden Greece saw some selling out of the euro.
The Dow Jones Industrial Average lost 49 points to 10,452. The S&P500 Index is down 6 to 1,108 and the NASDAQ closed 11 points lower at 2,201.
European markets were mixed. London’s FTSE declined 30 points, Paris improved 4 points and Frankfurt increased 9.
Asian markets were lower: Hong Kong’s Hang Seng fell 272 points. Tokyo’s Nikkei lost 22 and the Shanghai Composite declined 28 points.
Australian stocks ended higher on Tuesday. The S&P/ASX 200 Index finished 19 points stronger at 4,674. Looking at the futures market the SPI200’s down 22.
In currencies; the Aussie Dollar at 8.35AM is buying 90.67 US cents, 81.28 Yen, 62.39 Euro cents and 55.72 Pence Sterling.
In economic news: The Australian Bureau of Statistics will release the September quarter national accounts and Westpac-Melbourne Institute will report their economic index for October.
In company news: GPT Group (ASX:GPT) shares improved 1.79% to $0.57 yesterday. GPT has sold two of its non-core assets in the tourism sector. Its Brampton Island Resort has been sold to a private investor for $5.9 million and the Mt Gravatt Homemaker City was sold to another private investor for $22.4 million, slightly above its June 2009 book value. GPT said the offloading of these assets will see its portfolio in tourism reduce to only Ayers Rock Resort, as part of its strategy to exit the volatile tourism market. GPT reported a 2008 net loss of over $3 billion.
Lend Lease shares improved 0.74% to $9.50 yesterday. Lend Lease’s (ASX:LLC) acquisition of shares it doesn’t already own in Lend Lease Primelife has cleared the last hurdle after the Supreme Court of NSW gave the transaction the green light. Lend Lease received approval Primelife shareholders and independent directors on Monday. Primelife has lodged a copy of the court order approving the scheme with the Australian Securities and Investments Commission and it expects the deal to be implemented on December 23. Lend Lease reported a 2009 net loss of almost $654 million.
Taking a look at ex-dividends and going ex-dividend today is Singapore Telecommunications which is paying a 5.01 cent unfranked interim dividend. Coming up next week are a lot of companies going ex dividend including Bunnings and Macquarie Airports.
Looking at metals: Gold lost $1.10 to US$1,122.70 an ounce for the February contract on Comex. For the March contract Silver advanced 13 cents to US$17.47 and copper is 1 cent lower at US$3.14.
And the price of oil is $1.18 higher at US$70.69 a barrel for January light crude in New York.
