Falls on Wall Street look to ripple over to the Australian share market this morning after US stocks snapped a winning streak. Global markets moved lower as tensions between Ukraine and Russia continued to unnerve investors. Traders are also cautious ahead of a testimony from Federal Reserve Chair Janet Yellen on Wednesday in the US and a European Central Bank meeting on Thursday. Across currency markets the US dollar has slipped against a number of currencies, pushing the Australian dollar higher.
Global markets
Wall Street tumbled on Tuesday: The Dow Jones Industrial Average fell 130 points to close at 16,401, the S&P 500 fell 17 points to close at 1,868 and the Nasdaq fell 57 points to close at 4,081.
European markets lost ground yesterday: London's FTSE 100 dropped 24 points, France's CAC 40 dropped 35 points and Germany's DAX dropped 62 points.
Asian markets closed mixed on Tuesday: Japan’s Nikkei lost 28 points, Hong Kong’s Hang Seng lost 284 points, and China’s Shanghai Composite added almost 1 point.
The Australian share market built on Monday’s gains and rose 0.35 per cent on Tuesday: The S&P/ASX 200 index rose 19 points yesterday to close at 5,481. On the futures market the SPI is pointing 25 points lower.
Currencies
The Australian dollar has moved higher from Tuesday’s close at 7:20am this morning was buying $US0.9351, 55.09 Pence Sterling, 95.06 Yen and 67.14 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Retail trade figures for March
Australian Industry Group-Housing Industry Association: Performance of construction index for April
Company news
Westpac Banking Corporation's
(ASX:WBC) chief economist Bill Evans has echoed the Reserve Bank of Australia’s (RBA) forecast following the central bank’s decision to keep rates at a record low yesterday. Mr Evans says the RBA’s decision to hold the key cash rate at 2.5 per cent for its eighth straight meeting was no surprise and he has forecast an extended period of interest rate stability. Westpac is expecting rates to remain on hold until the second half of 2015. Mr Evans says this view is not widely held by other economic commentators with two thirds expecting rate hikes by early 2015 and some still anticipating rate cuts. Shares in Westpac Banking Corporation rose 0.7 per cent on Tuesday to close at $34.69.
Greencross Limited
(ASX:GXL) has announced the acquisition of four veterinary practices and the opening of three retail stores. The veterinary services provider will spend $3.7 million to buy practices in Victoria, South Australia, Queensland and New South Wales to boost its practices to 107 clinics. Greencross will also open three new stores in New South Wales, Queensland and New Zealand, taking its total number of stores to 133. Shares in Greencross fell 0.88 per cent to close at $7.85 before the announcement was released yesterday.
Ex-dividends
Australian Pharmaceutical Industries Limited
(ASX:API) paying a 1.5 cent fully franked dividend
Henderson Group
(ASX:HGG) paying a 10.64 cent unfranked dividend
Waterco Limited
(ASX:WAT) paying a 3 cent fully franked dividend
Commodities
Gold has dipped $0.70 to $US1,308.60 an ounce for the June contract on Comex.
Silver has added $0.07 to $19.64 for May.
Copper has firmed $0.003 to $3.06 a pound.
Oil has gained $0.02 to $US99.50 a barrel for June light crude in New York.
