The Australian share market looks to widen yesterday’s losses after Wall Street fell on news that Greece will hold a referendum on the eurozone’s proposed bailout plan. US stocks plunged almost 3 per cent, with the steepest falls in the banking sector. At homes eyes will also be on the banks today with Westpac Banking Corporation (ASX:WBC) this morning reporting a 7 per cent increase in its annual cash earnings, coming in at $6.3 billion.
US economic news
Manufacturing activity in America eased last month. The Institute for Supply Management reported manufacturing activity fell 0.2 points to 50.8 points in October, coming in under expectations for a rise up to 52 points.
The Commerce Department reported US construction spending rose 0.2 per cent in September, easing from a rise of 1.6 per cent the month before.
Figures
Wall Street closed lower on Tuesday: The Dow Jones Industrial Average dropped 297 points to close at 11,658, the S&P500 fell 35 points to close at 1,218 and the Nasdaq retreated 77 points to close at 2,607.
European stocks closed lower on Tuesday: London’s FTSE was down 123 points, Paris was down 175 and Frankfurt was down 307 points.
To Asian markets, stocks finished mixed: Hong Kong’s Hang Seng down 495 points, Tokyo Nikkei was down 153 and China’s Shanghai Composite was up 2 points.
The Australian share market shed more than 1.5 per cent on Tuesday: The S&P/ASX 200 Index dropped 65 points to close at 4,233. On the futures market the SPI is61 points down.
Currencies
The Australian Dollar at 8:40AM was buying $US1.0328, 64.76 Pence Sterling, 80.95 Yen and 75.43 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is building approvals data for September.
Company news
Yesterday shares in Myer Holdings Limited (ASX:MYR) closed 3.83 per cent down at $2.51. Myer has joined a chorus of retailers welcoming the RBA’s decision to yesterday cut rates by 25 basis points to 4.5 per cent. Myer’s CEO, Bernie Brookes, says the central bank's move was a responsible one helping all discretionary retailers. Mr Brookes also believes the latest rate cut is the first of potentially quite a few over the next 12 to 18 months. In the 2011 financial year Myer Holdings posted a net profit of $159.7 million.
Yesterday shares in Qantas Airways Limited (ASX:QAN) finished 1.11 per cent higher at $1.63. The fallout from Qantas’ decision to ground its entire domestic and international fleet over the weekend continues to escalate. Federal politicians will question Qantas’ CEO Alan Joyce about the airline’s grounding in a Senate inquiry on Friday. The grilling in Canberra comes amid reports that Australia’s competition regulator will investigate Qantas for allegedly selling tickets to customers when it knew it was going to stop flights. In the 2011 financial year Qantas reported a net profit of $249 million.
Commodities
Gold is down $13.40 to $US1,711 an ounce for the December contract on Comex.
Silver is down $1.62 cents to $32.73.
Copper is down $0.13 at $3.50 a pound.
Oil is down $1.00 at $92.19 a barrel for November light crude in New York.
