The Australian share market looks set for a rocky session after global markets fell in response to weak manufacturing figures from China, Europe and the US, fueling concerns the global economy is slowing. Sentiment looks to be given a further knock with news Moody's Investors Service has cut its credit ratings on 15 global financial institutions.
Figures
Wall Street retreated on Thursday: The Dow Jones Industrial Average fell 251 points to close at 12,574, the S&P500 fell 30 points to close at 1,326 and the Nasdaq fell 71 points to close at 2,859.
European markets also pulled back on Thursday: London’s FTSE lost 56, Paris lost 12 and Frankfurt lost 49.
Asian markets closed mixed yesterday: Hong Kong’s Hang Seng fell 254, Tokyo’s Nikkei added 72 and China’s Shanghai Composite lost 32 points.
The Australian share market dropped yesterday, closing more than 1 per cent down at the session’s lows. On Thursday, the S&P/ASX 200 index shed 45 points to finish at 4,088. On the futures market the SPI is now 34 points down.
Currencies
The Australian Dollar at 7:15AM was buying $US1.004 cents, 64.42 Pence Sterling, 80.61 Yen and 80.06 Euro cents.
Yesterday's worst performers
Shares in Myer Holdings Limited (ASX:MYR) slumped to an all time low yesterday, now having lost near 60 per cent since the retailer listed at the end of 2009. CEO Bernie Brookes has brushed aside the stock’s movements claiming it’s a reflection of a tough times in the general equities market and retail. Mr Brookes remains confident in Myer’s future, claiming there are opportunities but amid plenty of tough cards being dealt at the moment. Shares in Myer Holdings dropped 5.06 per cent yesterday, hitting an all time low of $1.69.
Shares in Acrux Limited (ASX:ACR) fell to the top 200’s worst performer after updating the market on a patent application. The drug manufacturer advises that US Patent and Trademark Office examiners have raised objections to the patent claims for its latest submission. Acrux says it remains confident in the merits of its patent claims and will continue the examination process. Shares in Acrux fell 14.5 per cent yesterday to close at $4.07.
Commodities
Gold is down $50.10 to $US1,565 an ounce for the August contract on Comex.
Silver is down $1.57 to $26.82 for July.
Copper is down $0.09 at $3.30 a pound.
Oil is down $0.74 at $81.06 a barrel for August light crude in New York.