The Australian share market looks set to dip this morning after global markets dropped on news China had lowered its annual growth target from 8 per cent to 7.5 per cent. At home eyes will be on the Reserve Bank of Australia interest rate decision this afternoon with expectations the central bank will keep rates on hold at 4.25 per cent.
US economic newsOrders to American factories have fallen for the first time in three months. According to the Commerce Department bookings dropped 1 per cent in January after rising 1.4 per cent the month before.
The American services sector grew at its strongest pace in a year last month. The Institute for Supply Management’s services index increased to 57.3 in February from 56.8 the month before, defying expectations for a drop.
FiguresWall Street started its week lower: The Dow Jones Industrial Average lost 15 points to close at 12,963, the S&P500 lost 5 points to close at 1,364 and the Nasdaq lost 26 points to close at 2,950.
European markets also fell on Monday: London’s FTSE lost 36 points, Paris lost 14 points and Frankfurt lost 55 points.
Asian markets finished weaker on Monday: Hong Kong’s Hang Seng lost 297 points, Tokyo Nikkei lost 78 and China’s Shanghai Composite lost 16 points.
The Australian share market had a soft start to the week, shedding 0.2 per cent on Monday: The S&P/ASX 200 Index lost 10 points to finish at 4,263. On the futures market the SPI is now down 14 points.
CurrenciesThe Australian Dollar at 8:30AM was buying $US1.0672 cents, 67.3 Pence Sterling, 86.98 Yen and 80.74 Euro cents.
Economic news due out todayReserve Bank of Australia: March interest rate decision
Australian Bureau of Statistics: Balance of payments and international investment position for the December quarter 2011
Dun and Bradstreet: Business expectations survey
Company newsShares in Rio Tinto Limited (ASX:RIO, NYSE:RIO) fell 1.27 per cent yesterday to close at $65.09. Global miner Rio Tinto has flagged plans to inject $US2 billion into an Indian iron ore project. Sam Walsh, CEO of Rio’s iron ore division, says the investment is poised to become Australia's largest investment in India. Rio Tinto reported a full year net profit of $6.7 billion in the 2011 financial year.
Shares in Woolworths Limited
(ASX:WOW) slipped 0.59 per cent on Monday to close at $25.24. Suppliers to Woolies and Wesfarmers Limited
(ASX:WES)-owned Coles have reportedly lodged a number of complaints with Australia’s competition regulator. The Australian Competition and Consumer Commission’s chief, Rod Sims, has told Fairfax media that ''major listed companies'' are among those who have provided evidence of ''unconscionable conduct'' from Woolies and Coles. In the first half of its 2012 financial year Woolworths posted a net profit of $975 million.
Ex-dividendsEleven companies are going ex-dividend today:
Caltex Australia
Customers
Global Construction Services
Global Resource Masters Fund
Independence Gold
Lindsay Australia
MACA
Miclyn Express Offshore
My Net Fone
Prophecy International Holdings
Salmat
CommoditiesGold is down $5.90 to $US1,704 an ounce for the April contract on Comex.
Silver is down $0.83 to $33.70 for March.
Copper is down $0.04 at $3.86 a pound.
Oil is up $0.02 at $106.72 a barrel for March light crude in New York.
