After dropping almost 2 per cent yesterday the Australian share market looks to be eyeing a slight recovery this morning following mixed offshore leads and ahead of the Reserve Bank of Australia’s (RBA) interest rate decision this afternoon.
US economic news
Factory orders in America fell surprisingly in April for the second straight month. The Commerce Department reported new orders for manufactured goods dropped 0.6 per cent in April, defying expectations for a rise and compared to a downwardly revised drop of 2.1 per cent the month before.
Figures
Wall Street closed mixed on Monday: The Dow Jones Industrial Average eased 15 points to close at 12,101, the S&P500 added 0.14 points to close at 1,278 and the Nasdaq lifted 13 points to close at 2,760.
European markets started the week mixed: London was closed for a public holiday on Monday and finished last week at 5,260. Yesterday Paris added 4 points and Frankfurt fell 72 points.
Asian markets closed lower yesterday: Hong Kong’s Hang Seng lost 373 points, Tokyo’s Nikkei lost 145 and China’s Shanghai Composite lost 65 point.
The Australian share market plunged below 4000 yesterday, closing almost 2 per cent down to hit a six months low: The S&P/ASX 200 index shed 79 points to finish at 3,985. On the futures market the SPI is now 20 points higher.
Turning to currencies and the Australian Dollar at 7:15AM was buying 97.25 US cents, 63.24 Pence Sterling, 76.25 Yen and 77.85 Euro cents.
Economic news out today
Reserve Bank of Australia: June monthly board meeting and interest rate decision
Australian Bureau of Statistics: Balance of payments and international investment position for the March quarter
Australian Industry Group and Commonwealth Bank of Australia (ASX:CBA): Australian Performance of Services Index for May
Stocks to watch
Watpac Limited (ASX:WTP) warned the market after sessions close yesterday to expect its full 2012 net profit to fall from previous guidance. The property developer now expects to report an underlying operating net profit after tax of between $15 and $16 million this year, broadly in line with the year before. Watpac had forecast last month its underlying operating net profit after tax would increase 20 per cent, but advised this would be reliant on the resolution of several claims which the company is still determined to receive. Shares in Watpac fell 5.34 per cent yesterday, closing at $0.62.
After yesterday forecasting a full year loss, reports have emerged that Wilson HTM Investment Group Limited (ASX:WIG) is considering de-listing. Despite recent cost cutting measures the stockbroking firm expects to book a loss of between $7 million and $8 million this year because of fall in trading volumes and ongoing market volatility. According to The Australian the company’s Managing Director Andrew Coppin says a number of options are being considered and “nothing's off the table”. Shares in Wilson HTM Investment Group closed steady yesterday at $0.25.
Ex-dividends today
Aditya Birla Minerals Limited (ASX:ABY): 5 cent final dividend
Ex-dividends later this week
CSR Limited (ASX:CSR) and Transmetro Corporation Limited (ASX:TCO)
Commodities
Gold is down $8.20 to $US1,614 an ounce for the August contract on Comex.
Silver is down $0.51 to $28.00 for July.
Copper is down $0.01 at $3.31 a pound.
Oil is up $0.75 at $83.98 a barrel for July light crude in New York.
