Outlook: Aus shares set to slip

Market Reports

The Australian share market is set to take a hit at the open, with US stocks knocked around by a number of weak corporate earnings reports.
 
Shares in Mastercard and Mattell tumbled on disappointing results, with analysts pointing to US investor sentiment that a stock market correction was on the cards, given the gains made on Wall Street last year. 
 
While the US is offering a negative lead for the local market today, most investors will be watching for key local economic data and corporate news this week as the RBA hands down its first interest rate decision for the year tomorrow afternoon and as February earnings season kicks off.
 
Figures

Wall Street spiraled on Friday US time: The Dow Jones Industrial Average lost 150 points to close at 15,699, the S&P500 dropped 12 points to close at 1,783 and the Nasdaq fell 19 points to close at 4,104.
 
European markets were also in the red: London’s FTSE shed 28 points, Paris lost 14 points and Frankfurt slipped by 67 points.

Asian markets declined: Tokyo’s Nikkei dropped 93 points, Hong Kong’s Hang Seng shed 106 points, and China’s Shanghai Composite lost 17 points.
 
The Australian share market closed relatively flat on Friday, ending the worst January for the benchmark in four years. The S&P/ASX 200 index added 2 points on Friday, however there was a weekly loss of 51 points to finish at 5,190. On the futures market the SPI is 23 points down. 

Currencies
 
The Australian dollar is recovering after dropping below 87 US cents on Saturday night after China's official manufacturing figures fell to a five-month low in January. At 7:25AM the Aussie was buying $US87.74 cents, 53.41 Pence Sterling, 89.45 Yen and 65.08 Euro cents.
 
Economic news  

AIG will release its performance of manufacturing index, ANZ will release its job ad figures and the Australian Bureau of Statistics will release its building approvals data for December.

Company news
 
Origin Energy Limited (ASX:ORG) says production has risen by 28 per cent in the December quarter, most due to a strong performance from its Otway Basin project. Sales revenue soared by 39 per cent to over $280 million on increased production volumes, higher average commodity prices and third party sales volumes. Shares in Origin Energy lifted 0.29 per cent on Friday to close at $13.98.
 
Infigen Energy Limited (ASX:IFN) has posted a lift in production and sales at its Australian operations duing the second quarter, thanks to improving wind conditions. Australian production rose 8 per cent on quarter, with Australian revenue also up 8 per cent to nearly $39 million. Shares in Infigen Energy dropped 2.08 per cent on Friday to close at 23.5 cents.
 
Ex-dividend

Alcoa Inc (ASX:AAI) will pay 2.92 cents per share unfranked.
 
Commodities

Gold is down $2.70 to $US1,240 an ounce for the April contract on Comex. Silver is down $0.01 to $19.12 for March. Copper is down $0.03 at $3.20 a pound. Oil is down $0.74 at US$97.49 a barrel for March light crude in New York.

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