The Australian share market looks to be bracing to retreat from last week’s highs after US and European markets pulled back on Friday. Wall Street tumbled more than 2 per cent, lodging the steepest one day decline since June, as earnings reports disappointed. On the local front the Annual General Meeting (AGM) season continues and the Federal Government is due to releases its mid-year economic and fiscal outlook this morning.
US economic news
The National Association of Realtors has reported existing home sales hit a better than expected annual rate of 4.75 million last month. September’s rate was 1.7 per cent down from the month before but 11 per cent higher than the year before.
Figures
Wall Street dropped at the end of last week: On Friday The Dow Jones Industrial Average fell 205 points to close at 13,344, the S&P500 fell 24 points to close at 1,433 and the Nasdaq fell 67 points to close at 3,006.
European markets also pulled back at the end of last week: London’s FTSE lost 21 points, Paris lost 31 points and Frankfurt lost 57 points.
Asian markets ended last week mixed: Hong Kong’s Hang Seng added 33 points, Tokyo’s Nikkei added 20 and China’s Shanghai Composite lost 3 points.
The Australian share market hit a fresh 15-month high on Friday after gaining almost 2 per cent over last week: The S&P/ASX 200 Index added 12 points on Friday to finishing the week 85 points stronger at 4,571. On the futures market the SPI is now 45 points lower.
Currencies
The Australian Dollar at 8:00AM was buying $US1.032 cents, 64.49 Pence Sterling, 81.85 Yen and 79.29 Euro cents.
Economic news due out today
Federal Government: Mid-Year Economic and Fiscal Outlook
Company news Santos Limited
(ASX:STO) says it has hit a landmark for Australia’s natural gas industry through launching the country’s first commercial shale gas production. The oil and gas producer announced at the end of last week its Moomba-191 shale well in the Cooper Basin of South Australia has been connected to the eastern states' gas grid. Santos has a 67 per cent stake in the South Australian Cooper Basin Joint Venture with Beach Energy Limited
(ASX:BPT) and Origin Energy Limited
(ASX:ORG) also holding an interest. Shares in Santos lifted 1.7 per cent on Friday to finish the week at $11.99.
Shares in AGL Energy Limited
(ASX:AGK) rose on Friday despite the power provider suspending the development on a proposed power station south of Sydney. AGL has blamed market conditions for impacting the economic viability of the $1.5 billion Dalton power station but says government approvals remain valid for the next five years. Shares in AGL rose 1.08 per cent at the end of last week to finish Friday at $15.02.
Ex-dividends today
Countplus Limited
(ASX:CUP) with a 3 cent fully franked dividend
Resolute Mining Limited
(ASX:RSG) with a 5 cent, 54 per cent fully franked dividend
Ex-dividends tomorrow
E&A Limited
(ASX:EAL) with a 2 cent fully franked dividend
GPT Group
(ASX:GPT) with a 4.7 cent unfranked dividend
ING Private Equity Access Limited
(ASX:IPE) with a 2.25 cent fully franked dividend
Commodities
Gold is down $20.70 to $US1,724 an ounce for the December contract on Comex.
Silver is down $0.77 to $32.10 for December.
Copper is down $0.09 at $3.64 a pound.
Oil is down $2.05 at $US90 a barrel for November light crude in New York.
