The Australian share market is set to follow Wall Street’s lead and open lower this morning. US investors overlooked positive economic data as concerns about Europe’s debt situation and doubts about the Federal Reserve’s QE3 stimulus plan struck sentiment.
US economic news
The S&P/Case-Shiller index of property values in 20 US cities rose more than expected in July, up 1.2 per cent from the year before.
The Conference Board reported consumer confidence lifted to a seven month high in September, rising above expectations to 70.3 from 61.3 last month.
Figures
US stocks fell to a two week low on Tuesday: The Dow Jones Industrial Average lost 101 points to close at 13,458, the S&P500 lost 15 points to close at 1,442 and the Nasdaq lost 43 points to close at 3,118.
European markets finished higher on Tuesday: London’s FTSE added 21 points, Paris added 17 points and Frankfurt added 12 points.
Asian markets ended mixed on Tuesday: Hong Kong’s Hang Seng added 4 points, Tokyo’s Nikkei lost 22 and China’s Shanghai Composite lost 4 points.
The Australian share market eased to session lows on Tuesday, closing 0.3 per cent down: The S&P/ASX 200 shed 13 points to close at 4,373. On the futures market the SPI is 35 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US1.039 cents, 64.19 Pence Sterling, 80.86 Yen and 80.55 Euro cents.
Company news Woolworths Limited
(ASX:WOW) and Wesfarmers Limited
(ASX:WES) owned Coles have seen a drop in no-name brand purchases, according to a Nielsen report. Aggressive discounting from the supermarket giants has been cited as a reason for consumers buying less no-name groceries for the first time in half a decade in favour of private label offerings. Shares in Woolworths slipped 0.99 per cent on Tuesday to close at $28.95.
Fertilizer, explosives and chemicals maker Incitec Pivot Limited
(ASX:IPL) has warned the rising gas price could impact its Phosphate Hill plant in Queensland. A company spokesperson has confirmed with Fairfax Media the plant would come under pressure if gas prices increase to as much as $12 per petajoule when its existing contracts expire. Shares in Incitec Pivot slipped 0.69 per cent on Tuesday to close at $2.87.
Ex-dividends today Ausdrill Limited
(ASX:ASL): 8 cent fully franked dividend
RHG Limited
(ASX:RHG): 10 cent fully franked dividend
Ex-dividends tomorrow
Alliance Aviation Services Limited
(ASX:AQZ): 5.6 cent fully franked dividend
SDI Limited
(ASX:SDI): 0.3 cent fully franked dividend
Commodities
Gold is down $3.20 to $US1,763 an ounce for the December contract on Comex.
Silver is down $0.14 to $33.81 for December.
Copper is down $0.02 at $3.73 a pound.
Oil is down $0.58 at $US90.79 a barrel for November light crude in New York.
