The Australian share market is expected to open weaker today as it receives negative leads from Wall Street overnight. US stocks fell as investors dumped risky assets on euro-zone debt worries. Despite EU’s bailout of Ireland, investors are seemingly having trouble moving beyond European debt contagion fears. US stocks also fell after North Korean and South Korean forces clashed, adding tension to an already nervous market.
In US economic news: According to the minutes from the central bank’s most recent policy meeting, The Federal Reserve has lowered its estimates for US economic growth for this year and the next. It has also raised its outlook for unemployment. The Fed expects GDP in 2010 to reach between 2.4 per cent and 2.5 per cent, a decrease from an earlier growth projection of between 3 per cent and 3.5 per cent. The central bank also said the unemployment rate is between 9.5 per cent and 9.7 per cent for all of 2010. Many bankers believe the joblessness rate could be as high as 9.1 per cent for 2011.
On Tuesday, the Dow Jones Industrial Average closed 142 points lower at 11,036. The S&P 500 Index fell seventeen points to close at 1,181 and the NASDAQ closed 37 points lower at 2,495.
European stocks were lower: London’s FTSE down 100 points, Paris is down 94 and Frankfurt down 117.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 628, Tokyo’s Nikkei was up 93 points and China’s Shanghai Composite down 56.
The Australian share market finished lower on Tuesday. The S&P/ASX 200 Index closed 54 points lower to 4,589 and on the futures market the SPI200 is down 51 points.
Turning to currencies and the Aussie Dollar at 8:15AM was buying 97.3 US cents, 6.66 Pence Sterling, 80.96 Yen and 72.75 Euro cents.
In economic news: Due out today is the Australian Bureau of Statistics construction work data for the September quarter.
Company news: On Tuesday shares in Navitas Ltd (ASX:NVT) closed 1.86 per cent higher to $3.83. Education provider Navitas says a decline in international student enrolments in Australia is creating headwinds for the company, however, it is still expects to report earnings growth for the current financial year. For the year ended 30 June 2010, Navitas reported a net profit of $62.8 million.
Yesterday shares in Leighton Holdings Ltd (ASX:LEI) closed 0.31 per cent higher to $32.55. Leighton has announced it has been awarded a two-year mining services contract from Anglo American Metallurgical Coal valued at $159 million. Under the agreement, Leighton will carry out surface mining operations at Dawson Mine, located in the Bowen Basin of Central Queensland. For the year ended 30 June 2010, Leighton generated a net profit of $615 million.
Ex-dividends: Companies that are going ex-dividend today are Customers Ltd, with an 8 cent unfranked dividend. Coming up tomorrow is TFS Corporation.
To commodities: and the price of gold is up $19.80 to $US1,377 an ounce for the December contract on Comex, silver is up $0.0111 cents to $27.57 and copper is down $0.049 to $3.70 a pound.
The price of oil is down $0.49 to $81.25 a barrel for December light crude in New York.
