The Australian share market is set to extend this week’s losses after US stocks retreated amid weak earnings reports and European stocks fell amid fears of a recession in Spain. On the economic front the Australian Bureau of Statistics is due to release inflation data before noon and the China-HSBC flash Purchasing Managers Index is also expected.
Figures
Wall Street retreated on Tuesday: The Dow Jones Industrial Average dropped 243 points to close at 13,103, the S&P500 dropped 21 points to close at 1,434 and the Nasdaq dropped 27 points to close at 2,990.
European markets also fell on Tuesday: London’s FTSE lost 85 points, Paris lost 77 points and Frankfurt lost 154 points.
Asian markets closed mixed on Tuesday: Hong Kong’s Hang Seng added 146 points, Tokyo’s Nikkei added 4 points and China’s Shanghai Composite lost 18 points.
The Australian share market ended flat yesterday after easing from session highs: The S&P/ASX 200 Index added 2 points on Tuesday to finish at 4,543. On the futures market the SPI is now 40 points down.
Currencies
The Australian Dollar at 8:15AM was buying $US1.026 cents, 64.36 Pence Sterling, 81.99 Yen and 79.07 Euro cents.
Economic news due out today Australian Bureau of Statistics: Consumer price index for September quarter
Commonwealth Bank of Australia
(ASX:CBA): Business sales indicator for September
Stocks to watch this morning Fairfax Media Limited’s
(ASX:FXJ) chief has rejected the company will break up ahead of the media company’s annual general meeting today. Speaking at a conference yesterday CEO Greg Hywood said Fairfax took a lot of advice around whether a break-up scenario was appropriate and in the end it was not. Analysts have speculated a merger or asset sales could also aid Fairfax to boost value. Shares in Fairfax Media rose 4.11 per cent on Tuesday to end the session at $0.38.
Crown Limited
(ASX:CWN) is reportedly close to receiving New South Wales government approval to build a $1 billion six star hotel resort and casino at the $6 billion Barangaroo South development in Sydney. NSW Premier Barry O'Farrell's cabinet is expected to formally accept the offer next week which is also understood to be backed by the state opposition. Property developer Lend Lease Group
(ASX:LLC) inked an exclusive deal with Crown for the development in August. Shares in Crown slipped 0.62 per cent on Tuesday to end the session at $9.54.
Ex-dividends tomorrow
Freedom Foods Group Limited
(ASX:FNP) with a 1 cent fully franked dividend
ICSGlobal Limited
(ASX:ICS) with a 0.1 cent, 18.7 per cent franked dividend
Commodities
Gold is down $16.90 to $US1,709 an ounce for the December contract on Comex.
Silver is down $0.46 to $31.79 for December.
Copper is down $0.05 at $3.57 a pound.
Oil is down $1.98 at $US86.67 a barrel for December light crude in New York.
