The Australian share market looks set to take a beating today, after US stocks closed more than 2 per cent lower following weaker than expected reports on manufacturing activity in the US and China.
US economic news
US manufacturing activity dropped heavily in January, declining to 51.3 from 56.5 in December.
China economic news
China's purchasing managers index for manufacturing, fell to 50.5 in January from 51 in December.
Economic news
While offshore leads are set to send the market deep in to the red today, investors will be looking at local economic data for direction with today’s all-important RBA cash rate announcement. The RBA is widely-tipped to keep the cash rate on hold at a record low 2.5 per cent when it meets for the first time this year. FNN will have all of the details on that decision shortly after 2.30pm Australian Eastern Standard Time.
Currencies
The Australian dollar climbed overnight against a weaker greenback following that disappointing manufacturing read, however sank lower as traders await today’s RBA announcement. At 8:15AM the Aussie was buying $US87.52 cents, 53.71 Pence Sterling, 88.37 Yen and 64.71 Euro cents.
Figures
Wall Street dived. The Dow Jones Industrial Average plunged 326 points to close at 15,373, the S&P 500 shed 41 points to close at 1,742 and the NASDAQ lost 107 points to close at 3,997.
European markets also suffered steep losses: London’s FTSE was down 45 points, Paris lost 58 points and Frankfurt shed 120 points.
Asian markets slumped on weak Chinese factory growth in January. But trading volumes were light with several Asian markets, including Shanghai and Hong Kong, on holiday for the Lunar New Year. Tokyo’s Nikkei declined by 295 points.
The Australian share market closed relatively flat yesterday as investors digested a mixed bag of economic news. The S&P/ASX 200 index fell 2 points to finish at 5,188. On the futures market the SPI is 99 points down.
Company news
Challenger Diversified Property Group
(ASX:CDI) is expected to deliver it's first half earnings today, as reporting season kicks off. It's estimated distribution for the six months ending December 31 is 9.2 cents per unit. Shares in Challenger Diversified Property Group lifted 0.4 per cent to $2.51.
Downer EDI Limited
(ASX:DOW) is also scheduled to release its half year results today. The announcement comes just days after the engineer scored two new contracts in Western Australia from global mining company BHP Billiton Limited
(ASX:BHP). The $40 million Rail Package contract will be completed in the second half of this year and the $60 million Shiploaders 1 and 2 contract will be completed in the first half of 2015. Shares in Downer EDI dipped 1.42 per cent yesterday to close at $4.86.
Commodities
Gold is up $20.10 to $US1,260 an ounce for the April contract on Comex. Silver is up $0.28 to $19.41 for March. Copper is down $0.01 at $3.18 a pound. Oil is down $1.06 at US$96.43 a barrel for March light crude in New York.
Ex-dividend
Australian Foundation Investment Co Limited
(ASX:AFI) Australian Masters Corp Bond Number 5 Limited
(ASX:AKY) Australian Masters Yield Fund Number 1 Limited
(ASX:AYD) Australian Masters Yield Fund Number 2 Limited
(ASX:AYH) Australian Masters Yield Fund Number 3 Limited
(ASX:AYJ) Australian Masters Yield Fund Number 4 Limited
(ASX:AYK)
