The Australian share market looks set for a tepid start to the day with the SPI pointing down and after US stocks slipped overnight as investors remain cautious ahead of potential new stimulus from the US Federal Reserve and the European Central Bank later this week.
US economic news
Consumer credit has unexpectedly declined in July, the first time in almost a year. According to the Federal Reserve outstanding credit fell $3.3 billion following a rise of $9.8 billion the month before. Economists had forecast a $9.2 billion rise.
Figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 52 points to close at 13,254, the S&P500 lost 9 points to close at 1,429 and the Nasdaq lost 32 points to close at 3,104.
European markets closed lower: London’s FTSE lost 2 points, Paris was down by 13 and Frankfurt lost 1 point.
Asian markets closed mixed: Hong Kong’s Hang Seng added 25 points, Tokyo’s Nikkei lost 2 and China’s Shanghai Composite added 7 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 8 points up to finish at 4,334. On the futures market the SPI is 9 points lower.
Currencies
The Australian Dollar at 7:20AM was buying $US1.033, 64.65 Pence Sterling, 80.91 Yen and 81.04 Euro cents.
Economic news
Due out today from National Australia Bank is the Monthly business survey for August.
Company news Wilson HTM Investment Group Limited
(ASX:WIG) will receive $174,000 in damages from rival Ord Minnett. The NSW Supreme Court found the broking firm induced Wilson employees to breach their employment contracts through sign-on bonuses, in some cases worth $1.2 million. Justice Bergin did not prevent Ord to continue poaching staff from Wilson. Ord's chief says it will continue to approach Wilson advisers in an appropriate manner. Shares in Wilson closed 5.26 per cent lower yesterday at $0.18.
Transfield Services Limited
(ASX:TSE) has been granted a six-month contract worth $24.5 million to provide services for asylum seekers at the re-opened detention centre on Nauru. The logistics group will provide catering, cleaning, security and transport facilities. Shares in Transfield closed 1.13 per cent up yesterday at $1.79.
Commodities
Gold is down $8.70 to $US1,731.80 an ounce for the December contract on Comex.
Silver is down $0.06 to $33.63 for December.
Copper is up $0.04 at $3.69 a pound.
Oil is up $0.12 at US$96.54 a barrel for October light crude in New York.
Ex-dividends
Legend Corporation Limited (ASX:LGD
