After US Markets ended the day lower amid continuing concerns for the European debt crisis and a decline in retail sales the Australian share market is set for a soft start to the day.
US economic news
Retail sales fell in May for the second consecutive month. The Commerce Deptartment showed a 0.2 per cent decline in sales for the month. The producer price index which measures price changes before they reach the consumer, slid 1 per cent in May according to the Labor Department.
Figures
Wall Street closed down yesterday: The Dow Jones Industrial Average lost 77 points to close at 12,496, the S&P500 lost 9 points to close at 1,315 and the Nasdaq lost 24 points to close at 2,819.
European markets closed mixed: London’s FTSE gained 10 points, Paris lost 17 and Frankfurt lost 9 points.
Asian markets closed up: Hong Kong’s Hang Seng added 154 points, Tokyo’s Nikkei added 51 and China’s Shanghai Composite added 29 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 9 points down to finish at 4,064. On the futures market the SPI is 14 points down.
Currencies
The Australian Dollar at 7:15AM was buying $99.34 US cents, 64.08 Pence Sterling, 78.96 Yen and 79.13 Euro cents.
Company news
Ainsworth Game Technology Limited (ASX:AGI) expects a boost to its full year results and forecasts full year profit before tax of about $45 million. Ainsworth expects its second half profit before tax to be about 30 per cent higher than its first half earnings, due to a one off $2.6 million profit, generated from a sale and leaseback transaction, which occurred earlier this year. Ainsworth recently established an operational facility in Las Vegas and expects machine sales in this region to exceed 1,200 for full year 2012. Shares in Ainsworth closed 3.89 per cent up yesterday at $1.87.
Gloucester Coal Limited (ASX:GCL) has received approval from the Supreme Court of Victoria for the proposed merger with China's state-owned Yancoal Australia Ltd. Legal documents are to be lodged with the Australian Securities and Investment Commission on June 27, at which time the merger will become legally effective and shares will be suspended. Under the deal Yancoal will control 78 per cent of the new entity, with Gloucester holding the remaining 22 per cent and its shareholders receiving a cash payment of $3.15. Shares in Gloucester closed 2.27 per cent up yesterday at $7.20.
Ex-dividends
Today:
Cellnet Group Limited (ASX:CLT) with a fully franked dividend of $0.10.
Tomorrow:
CI Resources Limited (ASX:CII) and Ironbark Capital Limited (ASX:IBC).
Commodities
Gold is down $1.00 to $US1,618.40 an ounce for the August contract on Comex.
Silver is down $0.12 to $28.82 for July.
Copper is down $0.025 at $3.31 a pound.
Oil is down $0.70 at US$82.62 a barrel for July light crude in New York.
