The Australian share market is expected to open marginally lower, the futures pointing to a flat start following all three major US indices finishing the day and month down. While euro-zone debt worries continue to weigh on international markets, local investors will be looking to the ABS, with September quarter gross domestic product due out today.
In US economic news: The Conference Board's index of consumer confidence delivered a read better than expected, increasing to 54.1 in November from a downwardly revised 49.9 the month before. While The Case-Shiller index of home prices in 20 major US markets dropped more than expected, home prices loosing 2% in the September quarter.
On Tuesday, the Dow Jones Industrial Average, closed 46 points lower to 11,006. S&P500 closed down 7 points to 1,181 and NASDAQ was down 27 points to 2,498.
European stocks were lower: London’s FTSE is down 23 points, Paris is down 27 points and Frankfurt is down 9.To Asian markets, stocks were also lower: Hong Kong’s Hang Seng was down 158, Tokyo’s Nikkei was down 189 points and China’s Shanghai Composite is down 46 points.
The Australian share market finished weaker on Tuesday. The S&P/ASX 200 Index closed 34 points lower to 4,584 and on the futures market the SPI200 is down 2 points. Turning to currencies and the Aussie Dollar at 8:30AM was buying 95.88 US cents, 61.64 Pence Sterling, 80.23 Yen and 73.86 Euro cents.
In economic news: All eyes will be on the Australian Bureau of Statistics when it releases its national accounts, including GDP figures for the September quarter. Also out today, the Ai Group/PriceWaterhouse Coopers performance of manufacturing index for November and the Reserve Bank of Australia’s index of commodity prices for November.
Company news: Shares in Asciano Group (ASX:AIO) closed 0.61 per cent lower to $1.62 on Tuesday. CEO Mark Rowsthorn says the ports and rail operator is looking to attract some of the foreign investors that have bought stakes in recently listed QR National Ltd (ASX:QRN). According to the Australian Financial Review, Mr Rowsthorn told Deutche Bank’s Australasian transport conference that Asciano is preparing to take advantage of QR National’s government legacy, to take more of its coal haulage business on its home turf. Asciano Group recorded a $975.9 million net loss in fiscal 2010, attributing the result to impairment charges of $1.14 billion.
Yesterday shares in Ten Network Holdings (ASX:TEN) fell 2.33 per cent to $1.47. Ten’s latest shareholders are under investigation from the Australian Competition and Consumer Commission, according to a Fairfax Media report. The ACCC is said to be looking into James Packer and Lachlan Murdoch's acquisition of the network’s shares, having flagged a potential conflict between their pay TV interests in Foxtel and free-to-air interests in Ten. The commission says it is currently seeking industry comment as to whether Mr Packer and Mr Murdoch’s interests will jeopardize competition in securing content in future. In the 2010 financial year, Ten Network Holdings posted a $150 million net profit.
Taking a look at ex-dividends now: There is one company going ex-dividend today and that is Graincorp with a 15 cent fully franked dividend. Coming up tomorrow is Templeton Global with a 3 cent fully franked dividend.
To commodities: Gold is up $19.00 to $US1,385 an ounce for the December contract on Comex, silver is up $1.03 to $28.18 and copper is up $0.0065 to $3.82 a pound. Oil is down $1.62 at $84.11 for December light crude in New York.
