The Australian share market is set to slip into the second session of the week after global markets sank more than 1 per cent overnight. A sell-off on Wall Street accelerated with investors moving away from tech stocks and turning to defensive names as the earnings season kicked-off. European markets also headed south following a three-week rally with London’s benchmark index notching its largest one-day fall in a month. Across commodity markets precious metals pulled back and oil prices dipped while the price of copper has recovered from its weakest point in over a week.
Global markets
Wall Street continued last week’s falls and dropped on Monday: The Dow Jones Industrial Average retreated 167 points to close at 16,246, the S&P 500 retreated 20 points to close at 1,845 and the Nasdaq retreated 48 points to close at 4,080.
European markets began the new week with steep falls: London's FTSE 100 Index tumbled 73 points, France's CAC 40 tumbled 48 points and Germany's DAX tumbled 185 points.
Asian markets ended mixed on Monday: Japan’s Nikkei dropped 255 points, Hong Kong’s Hang Seng fell 133 points, and China’s Shanghai Composite gained 15 points.
The Australian share market started the week in the red: The S&P/ASX 200 index lost 9 points on Monday to close at 5,414. On the futures market the SPI is pointing 18 points lower.
Currencies
The Australian dollar at 7:20am was buying $US0.9271, 55.83 Pence Sterling, 95.6 Yen and 67.47 Euro cents.
Economic news due out today
National Australia Bank Limited
(ASX:NAB): Monthly business survey for March
Company news Frank Lowy's Westfield Group
(ASX:WDC) could be hit with a ratings downgrade if its planned $70 billion restructure goes ahead. Moody's Investors Service has confirmed it is reviewing the retail giant’s status as shareholders get set to vote on the deal at the end of May. Westfield last year unveiled plans for the proposed restructure of its empire by merging its Australian and New Zealand business with Westfield Retail Trust
(ASX:WRT). The new entity to be known as Scentre Group and the international business of Westfield Group will become Westfield Corporation. Shares in Westfield Group rose 0.38 per cent yesterday to finish at $10.46.
Westfield Retail Trust
(ASX:WRT) has revealed one of its largest shareholders Australian superannuation fund Unisuper has lifted its stake in the company. The real estate investment trust lodged a change in substantial holding form to the ASX yesterday revealing Unisuper has upped its interest from 7.27 per cent to 8.49 per cent. The move comes amid reports some of Westfield Retail Trust’s shareholders are dissatisfied with the terms of the proposed restructure with Westfield Group. Westfield Retail Trust fell 0.99 per cent yesterday to finish at $3.01.
Ex-dividends today
PPK Group Limited
(ASX:PPK) paying a 1.5 cent fully franked dividend
Ex-dividends this week
Brickworks Limited
(ASX:BKW) paying a 14 cent fully franked dividend
Cadence Capital Limited
(ASX:CDM) paying a 5 cent fully franked dividend
TPG Telecom Limited
(ASX:TPM) paying a 4.5 cent fully franked dividend
Katana Capital
(ASX:KAT) paying a 1.5 cent fully franked dividend
Premier Investments
(ASX:PMV) paying a 20 cent fully franked dividend
FFI Holdings
(ASX:FFI) paying a 10 cent fully franked dividend
New Hope Corporation (ASX: NHC) paying a 6 cent fully franked dividend
Commodities
Gold has fallen $5.20 to $US1,298.30 an ounce for the June contract on Comex.
Silver has lost $0.04 to $19.91 for May.
Copper has added $0.02 to $3.04 a pound.
Oil has pulled back $0.70 to $US100.44 a barrel for May light crude in New York.
