The Australian share market is set to sink again today after global stocks tumbled amid concerns about the Chinese economy and a credit crunch in the world's second-biggest economy.
Markets in Asia suffered steep declines, especially China's Shanghai Composite, which tumbled after the People's Bank of China signalled it won’t take any more steps to increase liquidity despite tightening credit markets.
Figures
Wall Street was in negative territory: The Dow Jones Industrial Average lost 140 points to close at 14,660, the S&P 500 fell 19 points to close at 1,573 and the NASDAQ dropped 37 points to close at 3,321.
European markets followed suit: London’s FTSE lost 87 points, Paris shed 62 points and Frankfurt fell by 97 points.
Asian markets fell sharply: Hong Kong’s Hang Seng tumbled by 449 points, Tokyo’s Nikkei shed 167 and China’s Shanghai Composite slumped by more than 5 per cent, losing 110 points.
The Australian share market continued to reverse the year’s gains, dropping another 1.5 per cent yesterday. The S&P/ASX 200 index sank 70 points to finish at 4,669. On the futures market the SPI is 30 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US92.60 cents, 60.01 Pence Sterling, 90.51 Yen and 70.58 Euro cents.
Company news
Newcrest Mining Limited
(ASX:NCM) is planning to axe hundreds of jobs in Papua New Guinea, according to media reports. The miner's Papua New Guinea operations represent about half of its overall mine assets and the cuts will reportedly affect about 150 local and expatriate jobs. Shares in Newcrest continued to tumble yesterday, plunging 7.9 per cent to $9.53.
Metcash’s Limited
(ASX:MTS) incoming CEO Ian Morrice will review the wholesaler's flagship food and grocery division after a price war between the big supermarkets lured customers away from its independent stores. Mr Morrice has also pledged to chase new growth options for the group, saying recent acquisitions in the hardware and automotive parts sectors have helped lift profitability.
Shares in Metcash lifted 4.94 per cent yesterday to close at $3.61.
Ex-dividend
Agricultural Land Trust
(ASX:AGJ) will pay 2.82 cents per share unfranked
Aberdeen Leaders Limited
(ASX:ALR) will pay 3.75 cents per share fully franked
Commodities
Gold is down $14.90 to $US1,277 an ounce for the August contract on Comex. Silver is down $0.46 to $19.49 for July. Copper is down $0.07 at $3.02 a pound. Oil is up $1.49 at $US95.18 a barrel for August light crude in New York.
