Outlook: Aus shares set for weak start

Market Reports

The Australian share market looks set for a weak start to the day following negative offshore leads. Ongoing debt swap negotiations in Greece unnerved investors with uncertainty surrounding the EU summit trimming risk appetite.

US economic news

Personal income increased more than expected at the end of 2011. The Commerce Department has shown personal income rose 0.5 per cent in December. Consumer spending came in steady from the month before, defying expectations for a slight lift.
 
Figures

Wall Street started its trading week in the red. The Dow Jones Industrial Average lost 7 points to close at 12,654, the S&P500 lost 3 points to close at 1,313 and the Nasdaq lost 5 points to close at 2,812.

European markets started the week lower: London’s FTSE was down 62 points, Paris was down 53 points and Frankfurt was down 68 points.

Asian markets finished lower on Monday: Hong Kong’s Hang Seng was down 341 points, Tokyo Nikkei was down 48 and China’s Shanghai Composite was down 34 points.
 
The Australian share market opened higher but closed 0.4 per cent lower on Monday: The S&P/ASX 200 Index lost 16 points to finish at 4,273. On the futures market the SPI is 7 points lower.

Currencies

The Australian Dollar at 8:35AM was buying $US1.06 cents, 67.51 Pence Sterling, 80.9 Yen and 80.69 Euro cents.

Economic news due out today

Australian Bureau of Statistics: Private sector credit data for December

RP Data/Rismark: Home prices for December

National Australia Bank: Monthly business survey for December

Company news

Shares in Telstra Corporation Limited (ASX:TLS) dipped 0.3 per cent yesterday, closing at $3.31. Australia’s largest telco has lashed out at NBN Co, telling the Australian Competition and Consumer Commission the National Broadband Network will generate unfair costs for customers. Telstra has inked an $11 billion deal with NBN Co which will see the roll-out of the high speed internet network, estimated to cost about $40 billion. According to media reports the telco’s submission to Australia’s competition regulator claims NBN Co’s pricing strategy could be uncompetitive and result in “unnecessarily high” costs for customers. In the 2011 financial year Telstra posted a net profit of $3.25 billion.

Shares in Cape Lambert Resources Limited (ASX:CFE) were placed in a trading halt yesterday and last traded at $0.565. The mineral investment company says it is preparing an announcement regarding the completion of a significant secondary sale of its shares. Cape Lambert Chairman Tony Sage has told the Australian Financial Review he expects more than 30 per cent of the company’s stock will be held by institutions once the transaction is complete. Trading is expected to resume tomorrow or when an announcement is made. In the 2011 financial year Cape Lambert Resources reported a net loss of almost $12 million.

Commodities

Gold is down $1.20 to $US1,731 an ounce for the February contract on Comex.
Silver is down $0.26 to $33.53 for March.
Copper is down $0.06 at $3.83 a pound.
Oil is down $0.78 at $98.78 a barrel for March light crude in New York.


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