The Australian share market looks poised for a soft start to the session after US markets dipped but European markets firmed overnight. Wall Street investors absorbed more company earnings reports as the Federal Reserve indicated no changes to its interest rates or stimulus plans in its latest policy statement.
US economic news
Sales of new American homes have risen to a two year high. The Census Bureau has reported new home sales rose 5.7 per cent, beating expectations to hit an annual rate of 389,000 in September.
Figures
Wall Street closed Wednesday lower: The Dow Jones Industrial Average lost 25 points to close at 13,077, the S&P500 lost 4 points to close at 1,409 and the Nasdaq lost 9 points to close at 2,982.
European markets firmed on Wednesday: London’s FTSE added 7 points, Paris added 20 points and Frankfurt added 19 points.
Asian markets ended mixed on Wednesday: Hong Kong’s Hang Seng added 66 points, Tokyo’s Nikkei lost 60 and China’s Shanghai Composite added 2 points.
The Australian share market shed 0.8 per cent yesterday: The S&P/ASX 200 Index dropped 37 points on Wednesday to finish at 4,506. On the futures market the SPI is now 9 points lower.
Currencies
The Australian Dollar at 8:00AM was buying $US1.035 cents, 64.59 Pence Sterling, 82.68 Yen and 79.87 Euro cents.
Economic news due out today
Housing Industry Australia: Trades report for the June quarter
Company news Billabong International Limited’s
(ASX:BBG) shareholders have decided to keep founder and majority shareholder Gordon Merchant and board member Colette Paul on the board. Voting at the surf wear retailer’s annual general meeting yesterday shareholders re-elected the directors after calls from the Australian Shareholders Association to dismiss the pair for their part in rejecting a takeover bid of $3.50 per share from TPG in February. Outgoing chairman Ted Kunkel told shareholders the company has noted signs of improved traditions conditions, indications for a better summer compared to last year, and remains open to any new takeover offers. Shares in Billabong International rose 0.58 per cent on Wednesday to finish at $0.86.
Shares in Fairfax Media Limited
(ASX:FXJ) jumped following the media company’s annual general meeting yesterday as executives spruiked the strategic review. Separately, major shareholder Gina Rinehart has helped to deliver a 'strike' through voting against Fairfax’s remuneration report. Under the recently amended laws shareholders can request its directors go up for election if more than 25 per cent vote against the remuneration report for two consecutive years. Shares in Fairfax Media jumped 7.89 per cent on Wednesday to finish at $0.41.
Ex-dividends today
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 $7.80 to $US1,701 an ounce for the December contract on Comex.
Silver is down $0.17 to $31.62 for December.
Copper is up $0.01 at $3.58 a pound.
Oil is down $0.94 at $US85.73 a barrel for December light crude in New York.
