The Australian share market is tipped to lose some of the gains it made last week, amid investor anxiety over a potential US Government shut-down next week and a crisis in Italian politics.
Analysts say investors are uncertain as negotiations continue over the US budget, which could force a shutdown of some services.
Adding to the negative sentiment – a politicial crisis in Italy, where centre-right ministers resigned at the request of their leader and former Prime Minister Silvio Berlusconi.
Currencies
The Australian dollar fell lower as the US Congress debate over budget legislation continued. At 7:20AM the Aussie dollar was buying $US93.18 cents, 57.73 Pence Sterling, 91.13 Yen and 69.07 Euro cents.
Figures
Wall Street was in negative territory at the close on Friday US time: The Dow Jones Industrial Average lost 70 points to close at 15,258, the S&P500 dropped 7 points to close at 1,692 and the Nasdaq shed 6 points to close at 3,782.
European markets were also mostly lower: London’s FTSE fell by 53 points, Paris was flat and Frankfurt lost 3 points.
Asian markets were mixed: Tokyo’s Nikkei dropped 39 points, Hong Kong’s Hang Seng added 82 points, and China’s Shanghai Composite gained 4 points.
The Australian share market has finished the week stronger, climbing to a new five year high breaking above the 5,300 barrier. The S&P/ASX 200 index rose 13 points on Friday, widening the weekly gain of 30 points to finish the week at 5,307. On the futures market the SPI is 13 points down.
Economic news
TD Securities will release its inflation gauge data for September today and the Reserve Bank of Australia will put out its private sector credit figures for August.
Company news
NIB Holdings Limited
(ASX:NHF) says potential new areas of business for the company include overseas medical treatment. The health insurer says growing its Australian residents’ health insurance is still the top priority, but the company will explore other ways in which to expand. Shares in NIB lifted 0.93 per cent on Friday to close at $2.18.
Harvey Norman Holdings Limited
(ASX:HVN) chairman Gerry Harvey's annual pay remained steady at $1.03 million last financial year, despite the company's profit dropping by 17.5 per cent. Mr Harvey's base salary of $723,000 in fiscal 2013 was almost unchanged from the previous year, but slightly lower cash incentives meant his total pay dropped slightly from $1.035 million. Shares in Harvey Norman fell 0.31 per cent on Friday to close at $3.24.
Commodities
Gold is up $2.90 to $US1,339 an ounce for the December contract on Comex. Silver is up $0.07 to $21.83 for December. Copper is up $0.02 at $3.33 a pound. Oil is down $0.16 at US$102.87 a barrel for November light crude in New York.
Ex dividend
M2 Telecommunications Group Limited
(ASX:MTU) SMS Management & Technology Limited
(ASX:SMX)
