The Australian share market is expected to fall in early trade, after US stocks suffered their worst one-day losses in eight weeks on fears the US Federal Reserve will begin pulling back on its bond-buying program soon.
US economic news
US investors became anxious after better than expected jobs news. The number of US workers seeking first-time unemployment benefits fell to the lowest level since before the recession. Initial jobless claims decreased to a seasonally adjusted 320,000 last week.
Currencies
That news from the US buoyed the greenback, pushing the Australian dollar lower. At 7:35AM, the Aussie was buying $US91.39 cents, 58.44 Pence Sterling, 88.87 Yen and 68.47 Euro cents.
Figures
Wall Street fell sharply: The Dow Jones Industrial Average lost 225 points to close at 15,112, the S&P 500 dipped 24 points to close at 1,661 and the NASDAQ lost 63 points to close at 3,606.
European markets followed suit: London’s FTSE dropped 104 points, Paris lost 21 points and Frankfurt was down by 62 points.
Asian markets were also in the red: Tokyo’s Nikkei lost 297 points, Hong Kong’s Hang Seng dipped by 2 points, and China’s Shanghai Composite fell by 18 points.
The Australian share market was fairly flat yesterday as it digested a raft of earnings reports: The S&P/ASX 200 index closed 5 points lower at 5,152. On the futures market the SPI is 36 points down.
Company news
Santos Limited
(ASX:STO) will release its first-half earnings report today and analysts are tipping a small decline in underlying net profit on year. The miner is expected to focus on growth opportunities in Western Australia, which is the company's highest earning unit, including recent exploration success in promising offshore wells. Shares in Santos dropped 0.71 per cent yesterday to close at $14.01.
Yancoal Australia Limited
(ASX:YAL) will also release its first-half results today. The coal mining company has flagged currency exchange rates are likely to impact the bottom line. Shares in Yancoal lifted 0.69 per cent yesterday to close at 72.5 cents.
Ex-dividend Platinum Capital Limited
(ASX:PMC) will pay 5 cents per share fully franked.
Commodities
Gold is up $27.50 to $US1,361 an ounce for the December contract on Comex. Silver is up $1.15 to $22.94 for September. Copper is up $0.02 at $3.36 a pound. The oil price rose after a spike in Egyptian violence sparked fears of a possible supply disruption. Oil is up $0.48 at US$107.33 a barrel for September light crude in New York.
