The Australian share market is set to plunge today after US stocks closed sharply lower as President Barack Obama put pressure on Congress to end the political deadlock over budget negotiations.
Speaking from the White House on the eighth day of the government shutdown, President Obama called on Republicans to vote to reopen the federal government and increase the nation's borrowing limit, saying failure to act would create the significant risk of a very deep recession.
Meantime, data on the August trade deficit and on jobs openings were postponed due to the government shut-down.
Currencies
The US stalemate kept the Australian dollar range-bound. At 8:20AM the Aussie was buying $US94.21 cents, 58.61 Pence Sterling, 91.25 Yen and 69.44 Euro cents.
Figures
Wall Street fell deep into the red: The Dow Jones Industrial Average lost 160 points to close at 14,777, the S&P 500 slipped 21 points to close at 1,655 and the NASDAQ shed 76 points to close at 3,695.
European markets dropped as German manufacturing orders declined in August for a second-straight month against expectations of an increase. London’s FTSE lost 71 points, Paris fell 32 points and Frankfurt lost 36 points.
Asian markets erased early losses to close mostly higher as Mainland China markets re-opened after a week-long holiday.Tokyo’s Nikkei added 41 points, Hong Kong’s Hang Seng lifted by 205 points, and China’s Shanghai Composite gained 24 points.
The Australian share market closed 0.2 per cent lower yesterday, as investors fretted about the ongoing US government shut-down and looming debt ceiling debate. The S&P/ASX 200 index closed 12 points down to finish at 5,149. On the futures market the SPI is 40 points down.
Economic news
The Westpac Melbourne Institute will release its consumer confidence index for October.
Company news
ASX Limited
(ASX:ASX) has no plans to merge with any Asian market operators. The Australian share market operator’s chief executive officer Elmer Funke Kupper told media the opportunities for consolidation between market operators were in the United States and Europe, but reiterated the ASX is under no pressure and has no plans to merge. Shares in ASX lifted 0.12 per cent yesterday to close at $34.20.
Shares in Chinese mobile marketplace operator 99 Wuxian Limited
(ASX:NNW) have soared after debuting on the Australian market. 99wuxian has more than 20 million registered users and allows consumers to shop on mobile devices such as smartphones and tablets. Shares in 99 Wuxian gained as much as 50 per cent in their first day of trade, and closed at 45 cents.
Ex-dividend TPG Telecom Limited
(ASX:TPM) will pay four cents per share fully franked.
Commodities
Gold is down $0.50 to $US1,324.60 an ounce for the December contract on Comex. Silver is up $0.05 to $22.44 for December. Copper is down $0.01 at $3.29 a pound. Oil is down $0.46 at US$103.49 a barrel for November light crude in New York.