The Australian share market is expected to sink into the red at the open, after global markets reacted to the Bank of Japan's decision to refrain from any further stimulus measures.
The central bank’s decision sent the yen sharply higher, and spooked world markets as investors worried that the Bank of Japan’s outlook may also reflect a broader limiting of central bank stimulus efforts.
Figures
Wall Street fell lower, but regained steeper early-session losses: The Dow Jones Industrial Average lost 117 points to close at 15,122, the S&P 500 shed 17 points to close at 1,626 and the NASDAQ dropped 37 points to close at 3,437.
European markets were also down: London’s FTSE lost 60 points, Paris was 54 points lower and Frankfurt tumbled by 85 points.
Asian markets were also in the red: Tokyo’s Nikkei dived by 197 points, Hong Kong’s Hang Seng lost 260, and China’s Shanghai Composite shed 30 points.
The Australian share market closed moderately higher yesterday. The S&P/ASX 200 index closed 19 points up to finish at 4,757. But the market looks set to reverse those gains this morning , with the SPI down 40 points.
Currencies
The Australian Dollar at 7:20AM was buying $US94.4 cents, 60.35 Pence Sterling, 90.67 Yen and 70.92 Euro cents.
Economic news
The Australian Bureau of Statistics will release its lending finance data for April and the Westpac/Melbourne Institute will put out its survey of consumer sentiment.
Company news
Graincorp’s Limited
(ASX:GNC) capital expenditure budget may be about to get a boost, as Archer Daniels Midland seeks to sure up its takeover of the Australian company. ADM has pledged to boost GrainCorp's capital spending on handling and transport infrastructure by $50 million to $300 million in an effort to persuade growers who have been lukewarm to the offer. Shares in Graincorp dropped 0.8 per cent yesterday to close at $12.45.
Newcrest Mining Limited
(ASX:NCM) is expected to respond to an ASX investigation regarding the timing and circumstances behind the miner's significant profit and production downgrade, according to media reports. The ASX and ASIC are looking into the downgrade, as well as the trading of Newcrest shares leading up to the announcement, given a number brokers downgraded the stock ahead of the call. Shares in Newcrest took another dive yesterday closing 2.59 per cent lower at $12.03.
Commodities
Gold is down $9.00 to $US1,377 an ounce for the August contract on Comex. Silver is down $0.28 to $21.65 for July. Copper is down $0.05 at $3.20 a pound. Oil is down $0.39 at $US95.38 a barrel for July light crude in New York.
