The Australian share market is set to open moderately lower, after US stocks fell following the release of minutes from the latest Federal Reserve meeting, indicating the central bank may scale back its bond-buying program soon.
Currencies
The Australian dollar has fallen more than half a US cent on that news from the US Fed. At 8:20AM the Aussie was buying $US93.38 cents, 58 Pence Sterling, 93.4 Yen and 69.52 Euro cents.
US economic news
US economic data gave a boost to stocks in early trade, however that was short-lived with investors spooked by the looming withdrawal of stimulus.
US retail sales rose a better-than-anticipated 0.4 per cent in October despite last month's government shutdown.
But existing home sales dropped 3.2 per cent, missing an expected decline of 2.6 per cent in another sign that rising interest rates are weighing on the housing recovery.
Meantime, inflation fell in October, largely because of a decline in energy prices. The CPI fell 0.1 per cent. It was expected to remain unchanged.
Figures
Wall Street was in the red: The Dow Jones Industrial Average lost 66 points to close at 15,901, the S&P 500 dropped 7 points to close at 1,781 and the NASDAQ fell by 10 points to close at 3,921.
European markets were mixed, with the Stoxx Europe 600 up 0.1 per cent. The index shot up after a report that the European Central Bank is considering a cut to its deposit rate into negative territory, but then pared much of those gains. London’s FTSE slipped 17 points, Paris lost 4 points but Frankfurt gained 9 points.
Asian market benchmarks were mostly lower, but Hong Kong's Hang Seng Index gained 0.2 per cent and China's Shanghai Composite rose 0.6 per cent. Stocks in Hong Kong and China have rallied ovr the past few days after China introduced a wide range of proposals to eventually loosen some controls on the country's economy. Tokyo’s Nikkei lost 50 points, Hong Kong’s Hang Seng added 43 points, and China’s Shanghai Composite lifted by 13 points.
Local stocks finished in the red for the third consecutive session yesterday, with the Australian share market closing 0.8 per cent down. The S&P/ASX 200 index wound up 45 points down to finish at 5,308.On the futures market the SPI is 6 points down.
Company news
Paladin Energy Limited
(ASX:PDN) will hold its annual general meeting today. The update comes after the uranium producer announced yesterday that it has extended John Borshoff's term as chief executive and managing director. Shares in Paladin dropped 1.28 per cent yesterday to close at 38.5 cents.
Australia's corporate regulator is investigating Leighton Holdings Limited
(ASX:LEI) over alleged corporate offences linked to claims the firm paid multimillion-dollar bribes to win overseas contracts. ASIC has also revealed it plans to second one of its officers to the Australian Federal Police team examining whether former Leighton executives breached criminal laws by allegedly paying kickbacks to win a contract in Iraq. Shares in Leighton fell 2.22 per cent yesterday to close at $16.32.
Ex-dividend Asian Masters Fund Limited
(ASX:AUF)
Commodities
Gold is down $15.50 to $US1,258 an ounce for the December contract on Comex. Silver is down $0.27 to $20.06 for December. Copper is flat at $3.16 a pound. Oil is down $0.01 at US$93.33 a barrel for December light crude in New York.
