The Australian sharemarket is set to plunge today, after a 500 point fall in the Dow Jones Industrial Average. Growing anxiety over the global economic outlook sending overseas stocks crashing to fresh lows for the year.
US economic news
Jobless claims fell by 1,000 to a seasonally adjusted 400,000.
European economic news
The European Central Bank kept rates on hold and resumed buying government bonds in response to a worsening euro zone debt crisis.
Figures
On Thursday, the Dow Jones Industrial Average was down 513 points to close at 11,384, the S&P500 fell 60 points to close at 1,200 and the NASDAQ lost 137 points to close at 2,556.
European stocks were lower: London’s FTSE down 191 points, Paris fell 135, and Frankfurt lost 226 points.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng down 108, Tokyo’s Nikkei rose 22 points and China’s Shanghai Composite gained 6.
The Australian share market closed lower on Thursday: The S&P/ASX 200 Index finished the day down 56 points at 4,277. On the futures market the SPI is 157 points weaker.
Currencies
The Australian Dollar has taken a tumble, at 7:35AM the Aussie was buying $1.0478 US cents, 64.38 Pence Sterling, 82.95 Yen and 74.26 Euro cents.
Australian economic news
Due out today the Reserve Bank’s statement on monetary policy. Australian Bureau of Statistics retail trade for June. And the Australian Industry Group/Housing Industry Association performance of construction index (PCI) for July.
Company news
Yesterday shares in National Australia Bank Limited (ASX:NAB) ended the day down 2.28 per cent at $22.67. NAB faces a profit margin squeeze in the years ahead according to a report by The Australian. The squeeze is reportedly due to higher funding costs supporting the bank’s aggressive expansion into the mortgage market. The bank is due to give a trading update on Tuesday. For the half year to March, NAB posted a profit of $2.4 billion.
On Thursday shares in Hutchison Telecommunications Limited (ASX:HTA) ended the day flat at $0.065. Hutchison Telecommunications Australia reported a loss of $78 million in the first half this week, and now Hutchison Whampoa has posted a first-half profit that has missed analyst’s estimates. The reason – profits have been dragged lower by those losses of its Australian mobile phone business, eroding higher earnings from utilities and energy investments. For the half year to June 30 Hutchison reported a net loss of $78 million.
Ex-dividends
There aren’t any companies going ex-divided today, but on Monday we have Coal & Allied Industries Limited, Eldorado Gold Corporation Limited and Premium Investors Limited.
Commodities
Gold is down $7.30 to $US1,659 an ounce for the December contract on Comex, silver has fallen $2.33 to $39.43 for September and copper is down $0.09 at $4.24 a pound. Oil has fallen $5.30 to $86.63 a barrel for September light crude in New York.
