The Australian share market looks to have a soft end to a week which has seen more than 100 points shaved off the index. US and European markets dipped overnight following weak US economic data and news the euro zone has again slipped into a recession. Locally, with no major economic news scheduled for release a series of annual general meetings will continue to dominate company headlines.
European economic news
Official figures have revealed the euro zone dipped into recession in the third quarter of this year. Eurostat's first reading of gross domestic product showed the economic growth of the 17 euro countries shrank 0.1 per cent in the September quarter after shrinking 0.2 per cent in the June quarter – marking a recession as two consecutive quarters of contraction.
US economic news
The Labor Department reported 439,000 people filed for first-time unemployment benefits last week, more than expected and the highest level in more than a year as job hunters continued to be impacted by Hurricane Sandy.
The Federal Reserve Bank of Philadelphia's monthly manufacturing survey posted a bigger than expected fall in activity, defying expectations for a steady read.
The Bureau of Labor Statistics’ Consumer Price Index has shown prices edged up 0.1 per cent in October and were up 2.2 per cent year-on-year.
Figures
Wall Street dipped on Thursday: The Dow Jones Industrial Average lost 29 point to close at 12,542, the S&P500 lost 2 points to close at 1,353 and the Nasdaq lost 10 points to close at 2,837.
European markets also slipped on Thursday: London’s FTSE lost 44 points, Paris lost 18 points and Frankfurt lost 59 points.
Asian markets closed mixed on Thursday: Hong Kong’s Hang Seng lost 333 points, Tokyo’s Nikkei added 165 and China’s Shanghai Composite lost 25 points.
The Australian share mark sank 0.9 per cent yesterday: The S&P/ASX 200 Index dropped 39 on Thursday to finish at 4,349. On the futures market the SPI is 2 points lower.
Currencies
The Australian Dollar at 8:20AM was buying $US1.033 cents, 65.15 Pence Sterling, 83.89 Yen and 80.85 Euro cents.
Company news Paperlinx Limited
(ASX:PPX) has revealed more cost cuts for its UK business in response to tough trading conditions in Europe. The paper manufacturing company expects to generate savings of $13 million through the restructuring measures which include 200 job cuts. Paperlix was also hit with its first strike again executive pay yesterday as more than 50 per cent of shareholders voted against the company’s remuneration report. Shares in Paperlinx firmed 3.51 per cent on Thursday, closing at $0.059.
Lend Lease Group
(ASX:LLC) says lower interest rates have boosted inquiry levels but the uncertain environment and subdued market means sales are not picking up as quickly. However, Chairman David Crawford says the property developer is well on the way to delivering its target 15 per cent return on equity over the medium term. Lend Lease was also struck with its first strike against the company’s remuneration report as 26 per cent of its shareholder’s voted against the report at its annual general meeting yesterday. Shares in Lend Lease Group lost 0.12 per cent on Thursday, closing at $8.25.
Ex-dividends today
Atlas Iron Limited
(ASX:AGO) with a 3 cent unfranked dividend
Incitec Pivot Limited
(ASX:IPL) with a 9.1 cent dividend, franked 75 per cent
SP AusNet
(ASX:SPN) with a 4.1 cent dividend, franked 33.3 per cent
Commodities
The price of gold is down $16.30 to $US1,714 an ounce for the December contract on Comex.
Silver is down $0.20 to $32.67 for December.
Copper is up $0.01 at $3.46 a pound.
Oil is down $0.87 at $US85.45 a barrel for December light crude in New York.
