The Australian share market looks to open lower this morning after global markets dragged amid concerns about Greece’s political stalemate, news the nation faces new elections next month and the chance its voters may reject austerity measures and trigger a possible exit from the eurozone.
US economic news
The Commerce Department reported retail sales in America were up 0.1 per cent in April, coming in under expectations after a rise of 0.7 per cent the month before.
The Labor Department showed the Consumer Price Index came in steady for April, in line with expectations following a lift of 0.3 per cent the month before. Annual inflation came in at 2.3 per cent in April, close to the US Federal Reserve's target of 2 per cent.
Figures
Wall Street dropped to three month lows on Tuesday: The Dow Jones Industrial Average lost 63 points to close at 12,632, the S&P500 lost 8 points to close at 1,331 and the Nasdaq lost 9 points to close at 2,894.
European markets also fell on Tuesday: London’s FTSE lost 28 points, Paris lost 19 points and Frankfurt lost 51 points.
Asian markets closed mixed yesterday: Hong Kong’s Hang Seng added 159 points, Tokyo’s Nikkei lost 73 and China’s Shanghai Composite lost 6 points.
The Australian share market shed 0.7 per cent on Tuesday to close at one month lows. Yesterday the S&P/ASX 200 index lost 31 points to finish at 4,266. On the futures market the SPI is now 32 points lower.
Currencies
The Australian Dollar at 7:20AM was buying 99.4 US cents, 62.16 Pence Sterling, 79.7 Yen and 78.07 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Lending finance figures for March, the labour price index for March, international merchandise imports for April
Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute: Survey of consumer sentiment
Stocks to watch
The battle is on for takeover target Hastings Diversified Utilities Fund (ASX:HDF) with its first suitor, APA Group (ASX:APA), extending the offer period for its $1.1 billion takeover after the market closed yesterday. APA already holds a 20.7 per cent stake in Hastings and last week proposed to divest one of its key assets in order to score approval from Australia’s competition regulator. Hastings jumped to yesterday’s best performer after announcing it had received a new non-binding takeover proposal from a consortium named Pipeline Partners Australia Pty Ltd. Shares in Hastings Diversified Utilities Fund jumped 12.8 per cent on Tuesday, closing at $2.38.
ANZ Banking Group (ASX:ANZ) has announced its about to pour an extra $300 million into supporting its growth in China. The bank advised of the investment after the market closed yesterday and says it is making good progress towards its goal of earning 25-30 per cent of group profit from outside Australia and New Zealand by 2017. ANZ boosted its first half net profit by 10 per cent earlier this month, underpinned by 21 per cent profit growth in its Asia, Pacific, Europe and America division. Shares in ANZ dipped 0.41 per cent on Tuesday, closing at $22.11.
Ex-dividends today
Buderim Ginger Limited (ASX:BUG)
Ex-dividends on Friday
Incitec Pivot Limited (ASX:IPL)
Commodities
Gold is down $3.90 to $US1,557 an ounce for the June contract on Comex.
Silver is down $0.27 to $28.08 for May.
Copper is down $0.04 at $3.52 a pound.
Oil is down $0.80 at $94.00 a barrel for June light crude in New York.
