The Australian share market looks set to rebound this morning, with the SPI pointing to a strong start after two days of steep losses. US stocks fell for the third straight session, but less than feared, as investors returned from a long weekend.
Figures
Wall Street started its week lower after being closed for the Labor Day public holiday on Monday. On Tuesday the Dow Jones Industrial Average lost 101 points to close at 11,139, the S&P500 erased 9 points to close at 1,165 and the NASDAQ closed 7 points down at 2,474.
European stocks closed mixed on Tuesday: London’s FTSE added 54 points, Paris dropped 34 and Frankfurt retreated 52 points.
To Asian market, stocks were also mixed: Hong Kong’s Hang Seng was up 94, Tokyo Nikkei was down 194 and China’s Shanghai Composite was down 8 points.
The Australian share market retreated 1.6 per cent on Tuesday: The S&P/ASX 200 Index dropped 66 points to close at 4,076. On the futures market the SPI is 60 points higher.
Currencies
The Australian Dollar at 7:30AM was buying $1.0493 US cents, 65.83 Pence Sterling, 81.55 Yen and 75.01 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics, gross domestic product figures for the June quarter. From the Australian Industry Group and Housing Industry Association, the performance of construction index for August.
Company news
Shares in National Australia Bank Limited (ASX:NAB) fell 2.77 per cent on Tuesday to close at $22.14. Speculation is heating up that NAB is getting close to offloading its Clydesdale Bank and Yorkshire Bank in the UK to financial investment company NBNK in a $2.3 billion deal. NAB and NBNK previously considered launching a joint bid for 632 branches Lloyds Banking are being forced to sell. However, NAB is now understood to have pulled out of the process and instead is reportedly now locked in talks to sell or merge its UK assets with NBNK so the company can itself make a single bid for Lloyds. In the first half of its 2011 financial year, National Australia Bank recorded a net profit of $2.4 billion.
Shares in Rio Tinto Limited (ASX:RIO) dropped 1.98 per cent yesterday, finishing at $68.41. Rio and BHP Billiton Limited (ASX:BHP) have requested urgent talks with New South Wales political leaders in response to the government’s decision to increase royalties in the state budget. Spokespeople representing both of the global miners have told The Australian that they are concerned this increase could result in “unintended consequences”, such as the federal government raising its proposed mining tax. The latest New South Wales Government budget, unveiled yesterday, said the changes would inject $944 million into the state over three years and offset the impact of the proposed carbon tax on the state. In the first half of its 2011 financial year, Rio Tinto posted a net profit of $7.5 billion.
Ex-dividends
Five companies are going ex-dividend today: FSA Group, Gale Pacific, Hunter Hall International, Ludowici, Retail Food Group. Among those coming up tomorrow: BSA, Country Road.
Commodities
Gold is down $3.60 to $US1,873 an ounce for the December contract on Comex. Silver is down $1.20 cents to $41.87 for December. Copper is down $0.0685 to $4.06 a pound. Oil is down $0.43 at $86.02 a barrel for October light crude in New York.
