The Australian share market looks set for a cautious start to the day amid Europe’s debt woes that continue to weigh on investors. On Monday US stocks snapped a five day winning streak. Wall St closed lower but trimmed earlier losses on optimism that debt-laden Greece could secure another bailout deal.
US economic news
Builder sentiment has slipped further this month. The National Association of Home Builders’ index of builder sentiment fell to 14 in September from 15 the month before. A read under 50 indicates negative sentiment about the housing market.
Figures
Wall Street started the week lower: The Dow Jones Industrial Average closed 108 lower at 11,401. The S&P500 lost 12 points to close at 1,204. The Nasdaq declined 9 points to close at 2,613.
European stocks closed lower: London’s FTSE fell 109 points, Paris dropped 91 and Frankfurt retreated 158 points.
Asian markets, stocks also fell: Hong Kong’s Hang Seng was down 537, Tokyo Nikkei was closed and China’s Shanghai Composite was down 45.
The Australian share market shed 1.6 on Monday: The S&P/ASX 200 Index lost 68 points to close at 4,082. On the futures market the SPI is 11 points higher.
Currencies
The Australian Dollar at 7:45AM was buying $1.0212 US cents, 65.08 Pence Sterling, 78.23 Yen and 74.68 Euro cents.
Economic news
Released today are minutes from the Reserve Bank of Australia’s September board meeting and the Commonwealth Bank of Australia's (ASX:CBA) business sales index for August.
Company news
Shares in iiNet Limited (ASX:IIN) rose 1.3 per cent yesterday, finishing at $2.33. That was after the internet service provider revealed its pricing plans for the national broadband network (NBN). iiNet will offer three plans, from $50 for the basic package to $100 per month for higher data allowances, from the beginning of October in areas where the NBN is connected. Telco giants Telstra Corporation Limited (ASX:TLS) and Singapore Telecommunications Limited (ASX:SGT)-owned Optus have not as yet unveiled their pricing plans for the network. In the 2011 financial year iiNet reported a net profit of $33.4 million.
Shares in Karoon Gas Australia Limited (ASX:KAR) fell 7.35 per cent yesterday, closing at $2.90, after the natural-gas explorer reported a full year net loss. In the 2011 financial year Karoon extended its loss to $23 million. The result was hit by $10 million in foreign exchange losses, $4 million on exploration that did not uncover worthwhile oil and gas prospects and $6 million in costs from abandoning its South American asset float. The company maintains an upbeat outlook for the year ahead and has described the results of recently completed seismic programs in Australia, Brazil and Peru as “exciting”.
Ex-dividends
Six companies are going ex-dividend today: Atlas Iron, ASG Group, Imperial Pacific, London City Equities, Macquarie Radio Network and The Reject Shop. Coming up tomorrow is Grange Resources.
Commodities
Gold is down $35.80 to $US1,778 an ounce for the December contract on Comex.
Silver is down $1.67 cents to $39.16.
Copper is down 15 cents at $3.78 a pound.
Oil is down $2.26 at $85.70 a barrel for October light crude in New York.
