The Australian share market looks set to extend this week’s losses after Wall Street declined following disappointing earnings from retailers. US investors sold out of traditional retailers amid some weak profit forecasts casting doubt about the future of brick-and-mortar stores.
On the economic front investors will be awaiting the US Federal Reserve's latest policy meeting minutes over the next day and locally a read on consumer sentiment. Across commodities the iron ore price has continued to decline below $US100 per tonne while precious metals prices have firmed.
Global markets
Wall Street back-flipped into the red on Tuesday: The Dow Jones Industrial Average dropped 138 points to close at 16,374, the S&P 500 dropped 12 points to close at 1,873 and the Nasdaq dropped 29 points to close at 4,097.
European markets sank on Tuesday: London's FTSE 100 fell 43 points, France's CAC 40 fell 17 points and Germany's DAX fell 20 points.
Asian markets rose on Tuesday: Japan’s Nikkei added 69 points, Hong Kong’s Hang Seng added 130 points, and China’s Shanghai Composite added 3 points.
The Australian share market lifted from a sluggish start to end higher yesterday after the Reserve Bank of Australia (RBA) suggested rates will be on hold for some time: The S&P/ASX 200 index closed 11 points higher on Tuesday at 5,420. On the futures market the SPI is pointing 23 points lower.
Currencies
The Australian dollar fell under $US0.93 for the first time in two weeks following the RBA’s meeting minutes released yesterday. At 7:20am the local currency was buying $US0.9241, 54.9 Pence Sterling, 93.62 Yen and 67.48 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Wage price index for March quarter
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Survey of Consumer Sentiment
Company news
Treasurer Joe Hockey has launched defamation proceedings against Fairfax Media Limited
(ASX:FXJ). The action relates to a front-page article Fairfax ran titled "Treasurer For Sale" claiming Mr Hockey has been granting personal meetings in exchange for annual fees of up to $22,000 for a campaign fund-raising body. Fairfax Media said last night it had not yet been served with the writ but confirmed Mr Hockey's lawyers have filed an application against a number of its mastheads. The media company expects the case to be mentioned in court on the June 12. Shares in Fairfax Media fell 2.38 per cent on Tuesday to close at $1.02.
Speculation is mounting Ten Network Holdings Limited
(ASX:TEN) could be gearing up to again restructure its news division. Numerous reports claim the network is preparing to axe shows and announce up to 50 job cuts later this week. The speculation comes after Ten cut jobs last year and following continued weak ratings for its breakfast show Wake Up this year. Ten’s board are understood to be current mulling the latest job cuts amid speculation the company is being eyed by British broadcaster ITV for an investment or possible takeover. Shares in Ten Network Holdings dropped 1.75 per cent on Tuesday to close at $0.28.
Ex-dividends
Dicker Data Limited
(ASX:DDR) paying a 0.7 cent fully franked dividend
Z Energy Limited
(ASX:ZNZ) paying a 13.22 cent unfranked dividend
Commodities
Gold has firmed $0.80 to $US1,294.60 an ounce for the June contract on Comex.
Silver has added $0.05 to $19.40 for May.
Copper has slipped $0.02 to $3.14 a pound.
Oil has dipped $0.17 to $US102.44 a barrel for June light crude in New York.
