The Australian share market looks set to head south at open after global markets dropped overnight. Wall Street pulled back from recent highs as investors continued to mull when the US Federal Reserve will start to wind back its stimulus efforts.
While most major European markets also closed lower China was given a boost as the nation’s Communist Party wrapped up a four-day summit and Japan surged after posting a bigger than expected trade surplus.
For local investors there are a batch of earnings reports, series of AGM’s and handful of economic reports to digest as the trading day kicks into gear.
Figures
Wall Street’s major indexes are up more than 20 per cent this year but stocks put in a soft performance on Tuesday: The Dow Jones Industrial Average lost 32 points to close at 15,751, the S&P 500 lost 4 points to close at 1,768 and the NASDAQ ended flat at 3,920.
European markets ended lower on Tuesday: London’s FTSE lost 2 points, Paris lost 26 points and Frankfurt lost 31 points.
Asian markets finished mixed on Tuesday: Tokyo’s Nikkei surged 319 points, Hong Kong’s Hang Seng dropped 168 points, and China’s Shanghai Composite gained 17 points.
The Australian share market pulled back from highs to end flat following a surprise drop in business confidence yesterday. The S&P/ASX 200 index added 6 points on Tuesday to end the session at 5,393. On the futures market the SPI is 17 points lower.
Currencies
The Australian Dollar has continued to fall under the threat of US economic tapering at 8:20AM was buying $US0.9304 cents, 58.5 Pence Sterling, 92.71 Yen and 69.26 Euro cents.
Expected economic news
Australian Bureau of Statistics: Wage price index for September quarter
Australian Bureau of Statistics: New motor vehicle sales for October
Westpac Banking Corporation: Melbourne Institute Survey of Consumer Sentiment
Expected company earnings
Leighton Holdings Limited
(ASX:LEI): Third quarter results
Myer Holdings Limited
(ASX:MYR): First quarter sales results
DuluxGroup Limited
(ASX:DLX): Full year results
Annual General Meetings REA Group Limited
(ASX:REA) is getting set for their AGM in Melbourne today. The online real estate advertising business’ stock was given a boost yesterday after its majority shareholder News Corp
(ASX:NWS) revealed its first quarter report. The results show REA’s revenue grew 27 per cent to $99 million in the three months to the end of September 2013. Shares in REA Group rose 6.13 per cent on Tuesday, ending the session at $42.45.
Aurizon Holdings Limited
(ASX:AZJ) shareholders will gather in Brisbane for their AGM today.
The freight rail operator has been in the headlines amid speculation its Chairman John Prescott will face calls to retire. Investors are understood to be displeased with Mr Prescott’s handling of executive remuneration in the three year’s Aurizon has been a public company. Nevertheless the company’s stock is up more than 25 per cent this year and Shares in Aurizon Holdings gained 1.26 per cent on Tuesday, ending the session at a near all time high of $4.81.
Ex-dividends today
ResMed Inc.
(ASX:RMD) paying a 2.27 cent unfranked dividend
Ex-dividends tomorrow
Funtastic Limited
(ASX:FUN) paying a 0.5 cent fully franked dividend
Redflex Holdings Limited
(ASX:RDF) paying a 3 cent dividend, 66.67 franked
Commodities
The price of gold has continued to fall and is sitting at a 3.5 week low - declining $9.90 overnight to $US1,271 an ounce for the December contract on Comex.
Silver has dropped $0.50 to $20.78 for December.
Copper has eased $0.03 at $3.23 a pound. Oil has fallen $2.10 at $US93.04 a barrel for December light crude in New York.
