Aussie shares look to be in for a flat to lower start, Wall St clawing out modest gains to end marginally higher with US investors digesting housing and consumer confidence data as well as a series of earnings reports.
In US economic news: The S&P/Case-Shiller 20-City index of home prices in major metropolitan areas showed prices dropped 0.2% in August from the month before. Compared to a year ago, priced were up 1.7 per cent, coming in below expectations. The Conference Board showed consumer confidence increased to a read of 50.2 in October from 48.6 the month before. The result was higher than expected but still at historically low levels.
On Monday, the Dow Jones Industrial Average closed 5 points higher at 11,169. The S&P 500 Index is flat at 1,186 and the NASDAQ is up 6 at 2,497.
European stocks were lower: London’s FTSE down 45 points, Paris is down 17 and Frankfurt down 25.
Asian markets were also lower: Hong Kong Hang Seng down 27, Tokyo’s Nikkei was down 24 and China down 10.
The Australian share market finished lower on Tuesday. The S&P/ASX 200 Index closed 22 points lower to 4,688 and on the futures market the SPI200 is down 4 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying 98.65 US cents, 62.26 Pence Sterling, 80.32 Yen and 71.18 Euro cents.
In economic news: Expected out today Australian Bureau of Statistics consumer price index for the September quarter.
To company news: Shares in ASX Ltd (ASX:ASX) fell 7.38% on Tuesday to $38.67. The $8.4 billion proposed merger between ASX and the Singapore exchange is already facing political and regulatory hurdles. Currently Australian government laws prevent anyone from owning over 15 per cent of the Australian Securities Exchange operator. In addition approval will need to granted from the RBA, Australian Securities Investment Commission and the Foreign Investment Review Board. Former ASX chairman Maurice Newman told The Australian yesterday that Australia’s exchange could risk irrelevance if the merger is not approved. ASX increased its 2010 financial year profit by 4.6 per cent to $328.14 million.
Shares in Stockland (ASX:SGP) closed 1.31% lower yesterday to $3.78. Stockland has abandoned its plans to merge with GPT Group (ASX:GPT), yesterday moving to divest of its strategic stake in the property group. But it has not been without a price, the exit out of its GPT investment will reach an anticipated loss of over $200 million for Stockland. Stockland first bid for GPT unsuccessfully in 2004. In August this year Stockland said it would only consider mergers or acquisitions if they included high quality assets that aligned with its residential, retail and retirement strategy. Stockland moved into the black in fiscal 2010, reporting a $478 million net profit.
To ex-dividends: While no companies are going ex-dividend today, coming up tomorrow we have Adtrans Group, Australian Masters Corporate Bond Fund No1, Australian Masters Corporate Bond Fund No2 and Ten Network Holdings.
To commodities: and the price of gold is down US$0.30 to US $1338 an ounce for the December contract on Comex, silver is up US$0.29 to $23.83 and copper is up $0.01 at $3.87 a pound. The price of oil is up $0.03 to US$82.55 a barrel for December light crude in New York.
