The Australian share market is poised for a soft open with the SPI pointing down and after weak economic data caused US markets to close mixed overnight.
US economic news
Manufacturing activity has slumped again in August for the third straight month. According to the Institute for Supply Management, its monthly index slipped to 49.6. Economists expected it to remain steady at 50. A reading below 50 indicates contraction.
Construction spending was also weak in July weighed down by a big drop in home improvement projects. According to the Commerce Department, overall construction spending edged back 0.9 per cent following a 0.4 per cent gain the month before. Analysts projected a 0.4 percent increase for the month.
Figures
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 55 points to close at 13,036, the S&P500 lost 2 points to close at 1,405 and the Nasdaq gained 8 points to close at 3,075.
European markets closed lower: London’s FTSE lost 86 points, Paris was down by 55 and Frankfurt shed 82 points.
Asian markets closed lower: Hong Kong’s Hang Seng lost 129 points, Tokyo’s Nikkei was down by 8 and China’s Shanghai Composite lost 16 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 26 points down to finish at 4,304. On the futures market the SPI is 12 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US1.022, 64.42 Pence Sterling, 80.17 Yen and 81.38 Euro cents.
Economic news
Due out today from Australian Industry Group, is the Performance of Services Index for August and The Australian Bureau of Statistics will release economic growth data for the June quarter.
Company news
News Corporation's
(ASX:NWS) Australian arm News Limited is reportedly set to shed more jobs, as it outsources local subbing and makes changes to its news room. According to media reports, the changes which are due to be finalised late next month will affect about 65 jobs nationally. Half of the redundancies will come from its subbing operations and the remainder from its publishing division in Queensland. The news follows its 56 per cent decline in net income reported last month. Shares in News Corp closed 0.39 per cent lower yesterday at $22.95.
Rio Tinto Limited
(ASX:RIO) has welcomed the deferment of Fortescue Metals Group Limited’s
(ASX:FMG) expansion plans in the Pilbara region. Addressing an industry conference yesterday, Rio's head of Pilbara iron ore operations Greg Lilleyman said, the scale back will assist in medium term supply and demand. Rio is halfway through expanding its capacity by 60 per cent over three years. Shares in Rio Tinto closed 1.04 per cent up yesterday at $50.37.
Commodities
Gold is up $2.60 to $US1,698 an ounce for the December contract on Comex. Silver is down $0.04 to $32.37 for December. Copper is up $0.02 at $3.47 a pound. Oil is up $0.32 at US$95.63 a barrel for October light crude in New York.
Ex-dividends
Corporate Travel Management Limited
(ASX:CTD) 6 cents
Hunter Hall International Limited
(ASX:HHL) 15.7 cents
