The Australian share market is expected to slip in early trade after US stocks closed mostly lower amid investor uncertainty about when the Federal Reserve will pull back on its stimulus measures following stronger-than-expected economic data.
US investors were digesting a surprisingly good reading on the US services industry as they look ahead to key jobs data later this week.
US economic news
The Institute for Supply Management's non-manufacturing purchasing managers index for October rose to 55.4 from 54.4 in September. That was against expectations for a fall.
The ISM Employment index also showed strength, with a gain to 56.2 from 52.7 the prior month.
Figures
Wall Street was mixed: The Dow Jones Industrial Average lost 21 points to close at 15,618, the S&P 500 dropped 5 points to close at 1,763 but the NASDAQ added 3 points to close at 3,940.
European markets declined after the European Commission lowered its growth outlook for the euro-zone economy. London’s FTSE lost 17 points, Paris fell by 35 points and Frankfurt slipped 28 points.
Asian markets were mostly higher, with China's Shanghai Composite gaining 0.4 per cent amid hopes the Communist Party will push ahead with economic reforms.Tokyo’s Nikkei added 24 points, Hong Kong’s Hang Seng lost 151 points, and China’s Shanghai Composite added 8 points.
The Australian share market surged 0.7 per cent yesterday after the RBA held the cash rate at a record low of 2.5 per cent. The S&P/ASX 200 index closed 41 points up to finish at 5,432.On the futures market the SPI is 5 points lower.
Currencies
The Australian dollar has bounced back this morning after it fell following the Reserve Bank Governor Glenn Stevens’ statement expressing concern about the currency's uncomfortably high value. At 8:20AM the Aussie was buying $US95.03 cents, 59.25 Pence Sterling, 93.67 Yen and 70.56 Euro cents.
Economic news
The Australian Bureau of Statistics will release the September trade balance today, with economists expecting a $350 million deficit.
Company news
Commonwealth Bank of Australia
(ASX:CBA) will unveil its September quarter trading update today. It comes after CBA shares continue to hit record highs after surging by a third in the past year. Shares in CBA lifted 1.18 per cent yesterday to close at $77.
Downer EDI Limited
(ASX:DOW) will hold its AGM in Sydney today. The update comes j7ust days after the engineering firm secured a $400 million contract for work at the Wheatstone Project in Western Australia. Shares in Downer EDI rose 3.33 per cent to $5.28.
Ex-dividend Kathmandu Holdings Limited
(ASX:KMD) will pay 7.88 cents per share fully franked.
Commodities
Gold is down $6.60 to $US1,308 an ounce for the December contract on Comex. Silver is down $0.06 to $21.64 for December. Copper is flat at $3.26 a pound. Oil is down $1.25 at US$93.37 a barrel for December light crude in New York.
