After slumping 1.4 per cent yesterday the Australian share market is set to get a boost after Wall Street rose to new records on Wednesday. The Dow Jones Industrial Average and S&P 500 both climbed to record highs while the NASDAQ crept closer to the psychological barrier of 4,000 points.
The timeline for tapering US economic stimulus continues to shadow over sentiment with investors hoping US Federal Reserve officials will offer some clues as to the Fed’s intentions over the coming days.
As there is no major economic news scheduled for release today eyes will be on earnings results from Graincorp Limited
(ASX:GNC), James Hardie Industries
(ASX:JHX), Singapore Telecommunications Limited
(ASX:SGT) and Paladin Energy Limited
(ASX:PDN) and a number of Annual General Meetings (AGM) being held across Australia.
Figures
Wall Street hit new highs on Wednesday: The Dow Jones Industrial Average added 71 points to close at 15,822, the S&P 500 added 14 points to close at 1,782 and the NASDAQ added 46 points to close at 3,966.
European markets dropped on Wednesday amid fears the Bank of England could lift interest rates: London’s FTSE lost 97 points, Paris lost 24 points and Frankfurt lost 22 points.
Asian markets fell on Wednesday as investors continued to absorb the implications from a Chinese Communist Party meeting: Hong Kong’s Hang Seng fell 438 points, Tokyo’s Nikkei fell 22 points, and China’s Shanghai Composite fell 39 points.
The Australian share market lodged its biggest slump in six weeks yesterday, dropping 1.4 per cent by close. The S&P/ASX 200 index plunged 74 points to at 5,319 on Wednesday. On the futures market the SPI is 10 points lower.
Currencies
The Australian Dollar at 8:20AM was buying $US0.9338, 58.26 Pence Sterling, 92.75 Yen and 69.33 Euro cents.
Company news
Crown Resorts Limited
(ASX:CWN) chief James Packer has grown his wealth to surpass Frank Lowy and come in at second spot, but well under Gina Rinehart at the top of the ladder. BRW’s latest Rich 200 list estimates Mr Packer’s wealth has jumped by $1.7 billion to $7.7 billion since May but below Ms Rinehart’s $23.5 billion fortune. The figures come just days after Crown scored the screen light to build a $1.5 billion luxury hotel and casino at Barangaroo on Sydney Harbour. Shares in Crown Resorts lost 0.67 per cent on Wednesday to end at $16.42.
Westfield Group’s
(ASX:WDC) third quarter review has revealed it is on track to meet annual operating income guidance. The shopping centre owner and operator also said Australian retail conditions have remained consistent with prior periods but sales by specialty retailers in the US and UK have increased.
Westfield has also announced UK department store John Lewis has decided to anchor a $1.7 billion extension of its flagship Westfield London. Shares in Westfield Group fell 1.28 per cent on Wednesday to end at $10.80.
Ex-dividends
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
Tamawood Limited
(ASX:TWD) paying a 13 cent fully franked dividend
Commodities
Gold has dropped $2.80 to $US1,268 an ounce for the December contract on Comex.
Silver is at a three-month low, down $0.34 to $20.44 for December.
Copper is at a three-month low, down $0.08 at $3.16 a pound.
Oil has rebounded to rise $0.84 at $US93.88 a barrel for December light crude in New York.
