The Australian share market looks poised for weak start after global markets continued to slide. Selling on Wall Street gathered pace, with debt concerns in Europe offsetting better than expected economic data. European markets also retreated on news Greece will miss a budget deficit target that could hold back its next bailout. At home, the Reserve Bank of Australia’s decision on interest rates in due this afternoon.
US economic news
Manufacturing activity in America expanded more than expected last month. The Institute for Supply Management reported that its manufacturing index added 1 point to 51.6 in September. The read above 50 indicates expansion.
Figures
Wall Street started the week lower, The Dow Jones Industrial Average fell 211 points to 10,703, the S&P500 lost 30 points to close at 1,101 and the Nasdaq declined 80 points to close at 2,336.
European stocks also fell: London’s FTSE was down 53 points, Paris was down 55 and Frankfurt was down 125 points.
To Asian market, stocks also closed lower: Hong Kong’s Hang Seng was down 770, Tokyo Nikkei was down 155 and China’s Shanghai Composite was closed.
Yesterday the Australian share market started the new quarter and week 2.8 per cent down: The S&P/ASX 200 Index shed 112 points to close at 3,897. On the futures market the SPI is 46 points weaker.
Currencies
The Australian Dollar at 7:30AM was buying 95.36 US cents, 61.72 Pence Sterling, 73.11 Yen and 72.3 Euro cents.
Economic news
Today the Reserve Bank of Australia will meet for its monthly board meeting and interest rate decision. Due out from the Australian Bureau of Statistics are building approvals and international trade in goods and services data, both for August, and the business expectations survey from Dun and Bradstreet.
Company news
Shares in Sundance Resources Limited (ASX:SDL) entered into a trading halt yesterday, having last traded at $0.43. The Africa-focused iron ore miner is today expected to announce that it is backing an improved takeover bid from its largest shareholder, China’s Hanlong Mining. Speculation has been circling that Hanlong has boosted its original bid of $0.50 cents per share by 14 per cent to $0.57 cents per share, valuing Sundance at around $1.7 billion. In August Sundance said it was fundamentally not opposed to a takeover by Hanlong, if they get the numbers right and drop the conditions. In the 2011 financial year Sundance Resources booked a net loss of $21.7 million.
Yesterday shares in ANZ Banking Group (ASX:ANZ) fell 2.97 per cent, closing at $18.94, that was on the same day that the Federal Court heard why 34,000 ANZ customers have hit the bank with Australia’s largest class action. Law firm Maurice Blackburn are seeking to retrieve $50 million in fees paid by ANZ customers who allege the bank overcharged them in what are termed as "exception" fees. The case is likely to set a precedent, with up to 11 other lenders in Australia understood to be at risk of similar lawsuits. ANZ recorded a net profit of $2.7 billion in the first half of its 2011 financial year.
Ex-dividends
Three companies are going ex-dividend today: David Jones with a $0.15 fully franked dividend, Premier Investments with an $0.18 fully franked dividend, and, Webster with a $0.01 fully franked dividend. Among those coming up later this week: GBST Holdings, OrotonGroup, Marbletrend Group and National Can Industries.
Commodities
Gold is up $35.40 to $US1,657 an ounce for the December contract on Comex. Silver is up $0.71 cents to $30.80. Copper is steady at $3.15 a pound. Oil is down $1.59 at $77.61 a barrel for November light crude in New York.
