The Australian share market is expected to stumble in early trade on the back of falls on Wall Street overnight, but the spotlight will be on earnings reports today with mining giant BHP Billiton Limited
(ASX:BHP) and QBE Insurance Group Limited
(ASX:QBE) among those releasing full year results.
US stocks closed broadly lower as Treasury yields pushed higher on speculation the Federal Reserve may start to pull-back on its massive stimulus program soon.
Figures
The Dow Jones Industrial Average lost 71 points to close at 15,011, the S&P 500 dropped 10 points to close at 1,646 and the NASDAQ fell 14 points to close at 3,589.
European markets followed suit: London’s FTSE lost 34 points, Paris declined by 40 points and Frankfurt was down 26 points.
Asian markets were mixed: Tokyo’s Nikkei added 108 points, Hong Kong’s Hang Seng fell by 54 points, and China’s Shanghai Composite added 17 points.
The Australian share market ended the trading day flat as the market digested a heavy load of earnings news. The S&P/ASX 200 index finished just 1 point lower at 5,113. On the futures market the SPI is 17 points down.
Currencies
The Australian dollar has dipped in early trade, dragged down by a fall in commodity prices and the strength of the greenback which was boosted by high US Treasury yields. At 7:30AM the Aussie was buying $US91.16 cents, 58.26 Pence Sterling, 88.99 Yen and 68.36 Euro cents.
Economic news
The Reserve Bank of Australia will release its monthly board meeting minutes today.
Company news
All eyes will be on BHP Billiton Limited
(ASX:BHP) today as it reports its full-year result. Analysts are tipping profits will have fallen by as much as 26 per cent on the back of weaker demand for commodities. But investors are likely to be cheered by an expected increase in the mining giant’s annual dividend, due to the company’s progressive policy. Shares in BHP lifted almost half a per cent (0.46 per cent) yesterday to $37.04.
QBE Insurance Group Limited
(ASX:QBE) will also release its full year result today. The report comes after the insurance company reaffirmed its commitment to a $250 million savings drive last month. Shares in QBE rose about three-quarters of a per cent (0.77 per cent) yesterday to close at $17.03.
Five companies are trading ex-dividend today and they are Computershare Limited
(ASX:CPU), K2 Asset Management Holdings Limited
(ASX:KAM), Platinum Asset Management Limited
(ASX:PTM), SAI Global Limited
(ASX:SAI) and Wesfarmers Limited
(ASX:WES).
Ex dividend
Computershare Limited
(ASX:CPU) will pay 14 cents per share partially franked
K2 Asset Management Holdings Limited
(ASX:KAM) will pay 4 cents per share fully franked
Platinum Asset Management Limited
(ASX:PTM) will pay 14 cents per share fully franked
SAI Global Limited
(ASX:SAI) will pay 8.2 cents per share fully franked
Wesfarmers Limited
(ASX:WES) will pay $1.03 per share fully franked
Commodities
Gold futures have fallen lower amid investor caution ahead of the release of the Federal Open Market Committee's minutes later this week. Gold is down $5.30 to $US1,366 an ounce for the December contract on Comex. Silver is down $0.16 to $23.17 for September. Copper is down $0.03 at $3.33 a pound. Oil is down $0.36 at US$107.10 a barrel for September light crude in New York.
