The Australian share market looks set to fall at the open, following negative leads from Wall Street after German and French leaders discussed Europe’s debt problems, but offered little action.
US economic news
Fitch Ratings reaffirmed the United States' AAA credit rating. Less than two weeks ago Standard & Poor's downgraded the country’s long-term debt to AA+.
New home construction slumped in July, housing starts fell 1.5 per cent and permits to build new homes fell 3.2 per cent.
And Industrial output increased 0.9 percent, after a 0.4 percent gain in June, that’s almost double economists' expectations for a 0.5 percent rise.
European economic news
The leaders of France and Germany have stopped short of increasing the bloc’s rescue fund, focusing on further economic integration.
And German growth slowed in the second quarter of this year, gross domestic product rose just 0.1 per cent from the first quarter.
Figures
On Tuesday, the Dow Jones Industrial Average fell 77 points to close at 11,406, the S&P500 lost 12 points to close at 1,193 and the NASDAQ dropped 32 points to close at 2,523.
European stocks closed mixed: London’s FTSE up 7 points, Paris fell 8 and Frankfurt lost 27 points.
To Asian markets, and stocks were mixed: Hong Kong’s Hang Seng fell 48, Tokyo’s Nikkei was up 21 and China’s Shanghai Composite dropped 19 points.
The Australian share market fell on Tuesday: The S&P/ASX 200 Index sagged 36 points to close at 4,247. On the futures market the SPI is currently 4 points weaker.
Currencies
The Australian Dollar at 7:50AM was buying $1.0474 US cents, 63.68 Pence Sterling, 80.49 Yen and 72.72 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics labour price index for June and the Westpac/Melbourne Institute Survey of Consumer Sentiment for August.
Company news
Shares in News Corporation (ASX:NWS) finished 1.24 per cent higher yesterday, closing at $16.30. According to a report by Reuters, phone hacking was widely known about at News of the World says the reporter blamed as the sole culprit. It contradicts repeated denials by senior executives. In a letter reportedly written four years ago, former royal reporter Clive Goodman said hacking was openly discussed until the then editor Andy Coulson banned any reference to it. News Corp reported a yearly net profit to June 30 this year of $2.7 billion.
Yesterday shares in BHP Billiton Limited (ASX:BHP) fell 1.05 per cent to close at $39.43. The market is expecting BHP to post a record breaking yearly profit of more than $21 billion next week. That’s according to a report by Fairfax Media, and the consensus of 21 analysts. It comes after BHP’s June quarter production report. We’ll find out if they’re right next Wednesday. BHP Billiton reported a half yearly net profit of $10.5 billion to December 31, 2010.
Ex-dividends
There are two companies going ex-dividend today and they are JB Hi-Fi Limited with a $0.29 cent fully franked dividend and Reckon Limited with a $0.07, 90 per cent franked dividend.
Commodities
Gold is up $27.00 to $US1,785 an ounce for the December contract on Comex, silver gained $0.51 to $39.82 for September and copper fell $0.04 at $3.99 a pound. Oil is down $1.23 at $86.65 a barrel for September light crude in New York.
