The Australian share market looks set for a rocky session after global markets sank amid fears of Europe’s debt contagion. Concerns remained fixed on Greece’s possible exit from the eurozone, a potential bailout of Spanish banks and rising Italian borrowing costs, pushing the euro to almost a two-year low against the US currency and the Australian dollar to a six month low against the greenback.
US economic news
The National Association of Realtors’ index on pending home sales fell to 95.5 in April from 101.1 the month before, defying expectations for a rise.
Figures
Wall Street retreated on Wednesday: The Dow Jones Industrial Average fell 161 to close at 12,420, the S&P500 pulled back 19 to close at 1,313 and the Nasdaq dropped 34 to close at 2,837.
European markets also closed lower on Wednesday: London’s FTSE lost 94 points, Paris lost 69 points and Frankfurt lost 116 points.
Asian markets also finished down on Wednesday: Hong Kong’s Hang Seng fell 365 points, Tokyo’s Nikkei lost 24 and China’s Shanghai Composite eased 5 points.
The Australian share market closed 0.5 per cent lower on Wednesday. Yesterday the S&P/ASX 200 index lost 20 points to finish at 4,094. On the futures market the SPI is now 43 points down.
Currencies
The Australian Dollar at 7:20AM was buying 97.11 US cents, 62.73 Pence Sterling, 76.83 Yen and 78.51 Euro cents.
Economic news out today
The Australian Bureau of Statistics: Building approvals for April and private new capital expenditure and expected expenditure for March quarter.
Reserve Bank of Australia: Financial aggregates data for April
Company news
Property investment company Cromwell Group (ASX:CMW) has sold an industrial asset in Victoria for $39.35 million to Charter Hall Group (ASX:CHC). The Masters Distribution Centre property is leased and used by Woolworths Limited (ASX:WOW). Cromwell’s CEO Paul Weightman says the sale is consistent with the company’s strategy to refine its property portfolio with a focus on assets considered to have the highest risk-weighted return. Shares in Cromwell Group closed 0.71 per cent higher before the announcement was made, finishing yesterday’s session at $0.705 .
Myer Holdings Limited's (ASX:MYR) chief Bernie Brookes has reportedly flagged the department stores possible exit from its sponsorship deal with the spring racing carnival when its contract expires after this year's Melbourne Cup. According to Fairfax Media Mr Brooks says there is a 50/50 chance Myer will pull out of the sponsorship, because he believes the world has changed and that Myer does not need the spring racing carnival. The report speculates Myer pays the Victoria Racing Club about $3 million for the five-year sponsorship as well as about $3 million per year for entertainment and catering. Shares in Myer fell 0.5 per cent on Wednesday, closing at $1.98.
Ex-dividends
National Australia Bank Limited (ASX:NAB)
Newhaven Hotels Limited (ASX:NHH)
Commodities
Gold is up $14.70 to $US1,563 an ounce for the June contract on Comex.
Silver is up $0.19 to $27.98 for July.
Copper is down $0.07 at $3.38 a pound.
Oil is down $2.94 at $87.82 a barrel for June light crude in New York.
