The Australian share market is set for a subdued start to the trading day, after US stocks closed moderately lower, with investors reluctant to make big bets before the conclusion of a Federal Reserve policy-setting meeting.
There are growing expectations that the Fed will make no changes in light of the flat inflation data, but investors are striking a cautious tone.
US economic news
US economic data showed consumer prices were unchanged in November, signalling inflation remains well below the Fed's inflation target; and income growth for US citizens remained very slow, at 1.1 per cent year on year.
Currencies
The Australian dollar has fallen below 89 US cents for the first time in four months as expectations about that US Federal Reserve announcement continue to weigh on the currency. At 8:20AM the Aussie was buying $US89.04 cents, 54.76 Pence Sterling, 91.38 Yen and 64.71 Euro cents.
Figures
Wall Street was relatively unchanged, though in negative territory: The Dow Jones Industrial Average lost 9 points to close at 15,875, the S&P 500 dropped 6 points to close at 1,781 and the NASDAQ also slipped by 6 points to close at 4,024.
European markets followed suit: London’s FTSE lost 36 points, Paris shed 51 points and Frankfurt fell by 78 points.
Asian markets were a mixed bag: Tokyo’s Nikkei added 126 points, Hong Kong’s Hang Seng lost 45 points, and China’s Shanghai Composite dropped 10 points.
The Australian share market closed 0.3 per cent higher yesterday, as investors held fire ahead of the US Federal Reserve’s meeting. The S&P/ASX 200 index closed 13 points up to finish at 5,103. On the futures market the SPI is 1 point higher.
Economic news
The Westpac Melbourne Institute will release its Leading Index of Economic Activity today.
Company news
Australia and New Zealand Banking Group
(ASX:ANZ) will hold its annual general meeting today. The update comes as ANZ continues to improve its average rating with business customers. Shares in ANZ lifted 0.63 per cent yesterday to close at $30.48.
Coca-Cola Amatil Limited
(ASX:CCL) chief executive Terry Davis says he expects his successor, Alison Watkins, to back the company’s return to the $11 billion beer market. CCA has converted a $46 million loan to brewing partner Casella Wines to a 50 per cent equity stake in the Australian Beer Company and has started selling a range of beer and cider brands. Shares in Coca-Cola rose 0.61 per cent yesterday to close at $11.59.
Commodities
Gold is down $14.30 to $US1,230 an ounce for the February contract on Comex. Silver is down $0.26 to $19.84 for March. Copper is down $0.24 at $3.32 a pound. Oil is down $0.26 at US$97.22 a barrel for January light crude in New York.
