The Australian share market is tipped for a relatively flat open, after US stocks were little changed as investors weighed solid company earnings against the looming possibility the Federal Reserve will taper its stimulus efforts.
US economic news
Initial claims for US unemployment benefits fell last week, though slightly less than economists expected. Claims fell by 10,000 to a seasonally adjusted 340,000. Economists had expected 335,000 new claims.
European economic news
Global investors turned their attention to Europe overnight, amid a raft of disappointing data. The unemployment rate across the euro zone stayed at a record high of 12.2 per cent in September, while inflation for the euro zone fell to a four-year low of 0.7 in October.
Currencies
That data sparked a selloff in the euro, which saw the US dollar rise against most currencies, with the Australian dollar caught in the cross-fire. At 8:15AM the Aussie was buying $US94.59 cents, 58.99 Pence Sterling, 93.04 Yen and 69.64 Euro cents.
Figures
Wall Street had a subdued session: The Dow Jones Industrial Average lost 73 points to close at 15,546, the S&P 500 dropped 7 points to close at 1,757 and the NASDAQ fell 11 points to close at 3,920.
European markets were mixed as investors considered the dismal economic news may prompt the European Central Bank to maintain its stimulus measures: London’s FTSE lost 46 points, Paris added 26 points and Frankfurt lifted by 24 points.
Asian markets fell as the Bank of Japan kept its benchmark interest rate steady and maintained its bond-buying program.: Tokyo’s Nikkei dropped 174 points, Hong Kong’s Hang Seng lost 98 points, and China’s Shanghai Composite slipped 19 points.
The Australian share market has ended a strong month of gains slightly lower. The S&P/ASX 200 index dipped 5 points today to end the session at 5,426. On the futures market the SPI is 3 points higher.
Economic news
The Australian Bureau of Statistics will release its September quarter producer price index.
The Australian Industry Group will put out its performance of manufacturing index for October and the RP Data house price index for October is also set for release.
Company news
David Jones Limited
(ASX:DJS) will reveal its first-quarter sales figures today. It comes just weeks after chief executive Paul Zahra resigned from the up-market department store, saying he was simply tired after leading the chain through tough retail conditions. Shares in David Jones lifted 1.12 per cent yesterday to close at $2.72.
Macquarie Group Limited
(ASX:MQG) is set to unveil its first-half earnings today. The summary for the investment bank comes after reports its home loan book has more than doubled to $9 billion in the past year. Shares on Macquarie fell 1.64 per cent yesterday to close at $50.95.
Ex-dividend
Commodities
Gold is down $25.60 to $US1,324 an ounce for the December contract on Comex. Silver is down $1.12 to $21.87 for December. Copper is down $0.03 at $3.30 a pound. Oil is down $0.39 at US$96.38 a barrel for December light crude in New York.
