The Australian stock market looks set to open flat as it digests modest gains made on Wall Street and losses on European markets amid rising concerns over possible action against Syria.
Figures
Wall Street regained some ground overnight: The Dow Jones Industrial Average added 48 points to close at 14,825, the S&P 500 lifted 4 points to close at 1,635 and the NASDAQ gained 15 points to close at 3,593.
European markets were in negative territory: London’s FTSE lost 11 points, Paris dropped 8 points and Frankfurt fell by 85 points.
Asian markets were also in the red: Tokyo’s Nikkei tumble by 204 points, Hong Kong’s Hang Seng plummeted by 350 points, and China’s Shanghai Composite lost 2 points.
The Australian share market fell yesterday amid fears over unrest in Syria. The S&P/ASX 200 index closed 54 points down to finish at 5,087.
On the futures market the SPI is relatively flat, up 1 point.
Currencies
Turning to currencies and the Australian Dollar at 7:25AM was buying $US89.39 cents, 57.59 Pence Sterling, 87.3 Yen and 67.02 Euro cents.
Economic news
The Australian Bureau of Statistics will release private new capital expenditure and expected expenditure data for June quarter and the Housing Industry Association will put out new home sales data for July.
Company news
Qantas Airways Limited
(ASX:QAN) will report its full year earnings today, and analysts are expecting a decline in profits amid a weaker Australian dollar. In May, Qantas CEO Alan Joyce declined to offer profit guidance given the high degree of volatility. Shares in Qantas fell about 3-and-a-half per cent (3.53 per cent) yesterday to close at $1.23.
Westfield Group
(ASX:WDC) will report its half year results today, with analysts tipping an announcement on its Brazilian venture as well as revised guidance because of the lower Australian dollar. Guidance is expected to be lifted by one per cent if it’s believed the softer Aussie will be around for some time. Shares in Westfield lifted 1.64 per cent yesterday to close at $11.13.
Commodities
Gold is down $1.40 to $US1,419 an ounce for the December contract on Comex. Silver is down $0.26 to $24.39 for September. Copper is down $0.03 at $3.30 a pound. New York oil has hit its highest level for more than two years as concerns about Middle East supplies intensify while Governments consider possible military action against Syria. Oil is up $1.09 at US$110.10 a barrel for October.
