The Australian share market is expected to slip in early trade, after US stocks fell amid investor confusion over what the Federal Reserve will do next.
Another lingering concern for US investors is the possibility of a nasty political battle as Congress debates whether to lift the debt ceiling.
Figures
Wall Street extended its losses: The Dow Jones Industrial Average dropped 50 points to close at 15,401, the S&P 500 lost 8 points to close at 1,702 and the NASDAQ shed 9 points to close at 3,765.
European markets fell as Angela Merkel looks set to win a third term in Germany by forming a new coalition, with markets ignoring PMI data showing better-than-expected expansion in manufacturing. London’s FTSE lost 39 points, Paris fell 32 points and Frankfurt dropped 40 points.
Across Asian markets, China's Shanghai Composite rallied 1.3 per cent after HSBC's preliminary manufacturing PMI for September rose to a six-month high of 51.2. Japan's market was closed for a holiday. Hong Kong’s Hang Seng lost 131 points and China’s Shanghai Composite lifted 29 points.
Currencies
The Australian dollar continued its rally amid that positive China manufacturing news. At 7:20AM the Aussie was buying $US94.3 cents, 58.79 Pence Sterling, 93.21 Yen and 69.9 Euro cents.
The Australian share market recovered from yesterday’s lows on upbeat Chinese manufacturing data but still finished 0.5 per cent down. The S&P/ASX 200 index closed 24 points down to finish at 5,252. On the futures market the SPI is 28 points lower.
Company news
Macquarie Group Limited
(ASX:MQG) expects its profit to rise this financial year, so long as financial market conditions continue to improve. In a presentation to be delivered to analysts in Hong Kong this week, Macquarie reiterated its guidance of profit growth in its fiscal year to March 31, 2014. The company made an $851 million profit in fiscal 2013. Shares in Macquarie dropped 1.76 per cent yesterday to close at $49.12.
Wesfarmers Limited
(ASX:WES)-backed Coles Insurance is moving in on insurance giants Suncorp Group and IAG, selling 220,000 car and home policies since 2010, according to media reports. More than 75 per cent of all policies sold by Coles Insurance since June were for motor vehicle insurance, with the remainder for home cover. Shares in Wesfarmers fell 0.48 per cent yesterday to close at $41.31.
Commodities
Gold is down $5.50 to $US1,327 an ounce for the December contract on Comex. Silver is down $0.07 to $21.86 for December. Copper is down $0.02 at $3.30 a pound. Oil is down $1.16 at US$103.59 a barrel for November light crude in New York.
Ex-dividend
Aurora Sandringham Dividend Income Trust
(ASX:AOD) Aurora Property Buy-Write Income Trust
(ASX:AUP) Australian Social Infrastructure Fund
(ASX:AZF)
