The SPI is pointing to a weaker start to the day for the Australian share market after global markets continued to fall on fears for Europe's debt situation.
US economic news
There was encouraging data from the US overnight. Housing starts rebounded from a five-month low, climbing to 717,000 in April from 699,000 the month before. Industrial production also rose, 1.1 per cent in April above expectations for a 0.5 per cent increase.
Figures
Wall Street closed down yesterday: The Dow Jones Industrial Average lost 33 points to close at 12,599, the S&P500 lost 6 points to close at 1,325 and the Nasdaq shed 20 points to close at 2,874.
European markets closed mixed: London’s FTSE lost 32 points, Paris gained 9 and Frankfurt lost 17 points.
Asian markets closed down: Hong Kong’s Hang Seng shed 634 points, Tokyo’s Nikkei lost 100 and China’s Shanghai Composite was 29 points down.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 101 points down to finish at 4,166. On the futures market the SPI is currently 3 points lower.
Currencies
The Australian Dollar at 7:15AM was buying 99.15 US cents, 62.33 Pence Sterling, 79.64 Yen and 78.01 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is average weekly time earnings for the three months to February.
Stocks to watch
SP AusNet (ASX:SPN) is set to raise $434 million after yesterday reporting a rise of 0.8 per cent in its net profit to $225 million for the full year. The rights offer is fully underwritten. The electricity and gas provider says the offer will allow the company to fund organic growth at a 0 per cent premium to its regulated asset base. Shares in SP Ausnet closed flat yesterday at $1.115.
Speaking at an investor conference yesterday, BHP Billiton’s Limited (ASX:BHP) chief says it will not invest $80 billion on growth projects over the next five years as announced last year. Mr Nasser cited the Euro crisis, a slowing in China, as well as “political gridlock” in the US as the reasons behind not investing in the pipeline projects. Shares in BHP closed 4.05 per cent down yesterday at $32.49.
Ex-dividends
There are no companies are going ex-dividend today, however there is one scheduled for tomorrow:
Incitec Pivot Limited (ASX:IPL) with an interim dividend of 3.3 cents.
Commodities
Gold is down $17.50 to $US1,539.60 an ounce for the June contract on Comex.
Silver is down $0.88 to $27.20 for July.
Copper is down $0.05 at $3.47 a pound.
Oil is down $1.18 at $92.80 a barrel for June light crude in New York.
