The Australian market looks tipped to open lower today after Wall Street fell in volatile trading.
US economic news
Manufacturing grew last month for the 25th straight month, although at the slowest pace in two years, according to the Institute for Supply Management. The private trade group said its index of manufacturing activity slipped to 50.6 last month, down slightly from a reading of 50.9 in July.
A Thomson Reuters tally of the reports of 23 retailers showed mixed results after Hurricane Irene drove away business at some retailers, but boosted business for others. The tally, shows that sales at stores open at least a year rose 4.4 per cent in August, just shy of the 4.6 percent rise analysts expected.
The big three automakers have all posted strong gains. GM boost deliveries by 18 per cent in August to 218,479; Chrysler’s US sales rose 31 per cent to 130,119 vehicles; and Ford showed sales gains of 11 per cent to 175,220.
UK economic news
British manufacturing activity tumbled to a 26-month low in August. The manufacturing purchasing managers' index (PMI) stood at 49 points in August, down from 49.4 in July.
Figures
On Thursday, the Dow Jones Industrial Average lost 120 points to close at 11,494, the S&P500 lost 14 points to close at 1,204 and the NASDAQ lost 33 points to close at 2,546.
European stocks closed mixed: London’s FTSE was up 24 points, Paris was up 9 and Frankfurt was down 54.
To Asian markets, and stocks were also mixed: Hong Kong’s Hang Seng rose 50, Tokyo Nikkei was up 106 point and China’s Shanghai Composite was down 11 points.
Yesterday, The S&P/ASX 200 Index closed 11 points higher at 4,308. On the futures market the SPI is currently 49 points weaker.
Currencies
The Australian Dollar at 7:35am was buying $US1.0725 cents, 66.29 Pence Sterling, 82.49 Yen and 75.22 Euro cents.
Company news
Yesterday shares in Fortescue Metals Group (ASX:FMG) closed 1.65 per cent higher at $6.15. The miner says its $8.4 billion Pilbara expansion will feature 95 per cent local content, despite claims by steelmakers that miners are neglecting Aussie manufacturers. Director of developments Peter Meurs has told media money spent offshore is only to pay for specialists equipment not available in Australia. His comments come a day after Rio Tinto Iron Ore chief executive Sam Walsh also said it was a ‘myth’ mining companies aren’t supporting local manufacturers. Fortescue Metals Group (ASX:FMG) reported a profit of $952 million for the six months to June this year.
On Thursday shares in Bluescope Steel Limited (ASX:BSL) rose 3.66 per cent, finishing the day at 85 cents. A mass meeting of staff and contractors met with the Australian Worker’s Union at Wollongong yesterday, for the first time since the company announced it was shedding more than 1000 jobs. Workers says the company’s directors have mismanaged its operations, but many also said the Federal Government should step in to help out the steel industry. The company has not yet given a statement to media. Bluescope Steel Limited (ASX:BSL) posted an annual net loss of $1.04 billion this year.
Ex-dividends
Eleven companies are going ex-dividend today, including: AGL energy; Amalgamated Holdings; Asciano; Coventry Group; QR National; Ramsay Health and Templeton Global.
Commodities
Gold is down $2.60 to $US1,829 an ounce for the December contract on Comex. Silver is down 24 cents to $41.53 for September. Copper is down 4 cents at $4.16 a pound. Oil is up 12 cents at $88.93 a barrel for October light crude in New York.
