The Australian share market is set for a relatively flat start to the day as it looks for direction ahead of today’s RBA board meeting.
Economists are tipping the RBA will hold the cash rate steady today, due in part to the falling value of the Aussie dollar. While a cut isn’t expected today, economists say it’s on the cards later this year.
Figures
Wall Street rebounded from Friday’s steep losses, despite disappointing manufacturing and construction spending data: The Dow Jones Industrial Average gained 138 points to close at 15,254, the S&P 500 added 10 points to close at 1,640 and the NASDAQ firmed by 9 points to close at 3,465.
European markets were down on fears of the health of the economy in Germany and the US: London’s FTSE shed 58 points, Paris lost 28 points and Frankfurt slipped 63 points.
Asian markets were mixed but Nikkei suffered a sharp sell-off: Hong Kong’s Hang Seng shed 110 points, Tokyo’s Nikkei lost 513 and China’s Shanghai Composite was up by half a point.
The Australian share market closed at the day’s lows, 0.8 per cent down yesterday.
The S&P/ASX 200 index closed 38 points down to finish at 4,888.
On the futures market the SPI is 2 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US97.67 cents, 63.76 Pence Sterling, 97.19 Yen and 74.71 Euro cents.
Company news
Virgin Australia Holdings Limited
(ASX:VAH) is taking advantage of a recent decision granting it access to the Italian market, entering new codeshare arrangements with Etihad and Singapore airlines. Virgin’s new Italian services will see the airline offer fares with Etihad to Milan and with Singapore to Milan and Rome. Shares in Virgin were flat yesterday, closing at $0.47.
Westpac Banking Corp
(ASX:WBC) may have to cut mortgage rates to prevent rivals taking a bigger share of the home loan market, according to media reports. It comes after the Commonwealth Bank recently increased its growth rate, putting the spotlight on Westpac, which has the highest standard variable mortgage rate among the big four and has been gradually losing market share. Shares in Westpac finished up 1.97 per cent yesterday, to close at $29.
Commodities
Gold is up $18.90 to $US1,412 an ounce for the August contract on Comex. Silver is up $0.48 to $22.72 for July. Copper is up $0.04 at $3.33 a pound. Oil is up $1.48 at $US93.45 a barrel for July light crude in New York.
