The Australian share market is set to slip in early trade after US stocks fell overnight, with the Dow and the S&P 500 retreating from milestone levels, led by a slide in electronics retailer Best Buy, which gave a disappointing outlook for the holiday season.
There was little economic data to drive US markets, but investors were looking forward to key releases on retail sales, inflation and existing-home sales later in the week. Tomorrow, the Fed will release its October policy meeting minutes as investors look to gauge the strength of the US economy. A Senate banking committee panel is also set to vote on the nomination of Janet Yellen to head the Federal Reserve on Thursday.
Currencies
The Australian dollar hit its highest level in almost two weeks after China said it would ease restrictions on investment and the value of its currency. At 8:30AM the Aussie was buying $US94.26 cents, 58.49 Pence Sterling, 94.45 Yen and 69.65 Euro cents.
Figures
Wall Street took a hit but the damage was limited after Home Depot delivered stronger than expected earnings: The Dow Jones Industrial Average dropped 9 points to close at 15,967, the S&P 500 lost 4 points to close at 1,788 and the NASDAQ fell 18 points to close at 3,932.
European stocks fell after billionaire investor Carl Icahn warned that equities were heading for a big drop. London’s FTSE lost 25 points, Paris slipped by 48 points and Frankfurt dropped 32 points.
Asian markets were mostly down on profit-taking and Japan softened as the yen strengthened against the dollar. Tokyo’s Nikkei dipped by 38 points, Hong Kong’s Hang Seng lost 2 points, and China’s Shanghai Composite slipped by 4 points.
The Australian share market closed 0.6 per cent down yesterday after bearish comments by influential investor Carl Icahn sent Wall Street in to a spiral. The S&P/ASX 200 index closed 32 points down to finish at 5,353. On the futures market the SPI is 26 points down.
Economic news
The Department of Employment and Workplace Relations will release its skilled vacancies figures for October today, with economists tipping a 0.5 per cent lift.
Company news
Virgin Australia Holdings Limited
(ASX:VAH) will hold its annual general meeting today. The update to shareholders comes as chief executive John Borghetti responds to claims from Qantas that it is receiving an unfair advantage, insisting it has ended a monopoly in Australia’s skies. Shares in Virgin were flat yesterday to close at 39 cents.
Drillsearch Energy Limited
(ASX:DLS) will also hold its annual general meeting today. Shareholders will be looking for a progress report on the company’s joint venture with Santos Limited
(ASX:STO) to fast-track the Western Cooper Wet Gas Project. Shares in Drillsearch lifted 1.64 per cent yesterday to close at $1.24.
Commodities
Gold is up $1.20 to $US1,274 an ounce for the December contract on Comex. Silver is down $0.02 to $20.33 for December. Copper is up $0.01 at $3.16 a pound. Oil is up $0.31 at US$93.34 a barrel for December light crude in New York.
