Following yesterday’s pessimistic outlook of global growth by the World Bank, US and European markets have all traded lower and the Australian share market looks set to follow this morning.
Meanwhile news out of the US Treasury suggests the world’s largest economy is continuing its recovery with its budget deficit shrinking further last month, to $436 billion in the eight months to May.
Data from the International Monetary Fund suggests that Australian homes are amongst the most expensive in the world. When judged on a measure of house price-to-income and price-to-rent, Australian homes came in second most expensive, behind Belgium. The report showed Australian house prices are well above their historic averages.
Global figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 102 points to close at 16,844, the S&P 500 lost 7 points to close at 1,944 and the NASDAQ lost 6 points to close at 4,332.
European markets closed lower : London’s FTSE lost 35 points, Paris lost 40 points and Frankfurt lost 79 points.
Asian markets closed mixed: Tokyo’s Nikkei added 75 points, Hong Kong’s Hang Seng lost 58 points, and China’s Shanghai Composite added 2 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 16 points down to finish at 5,454. On the futures market the SPI is 17 points down.
Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.9386 cents, 55.91 Pence Sterling, 95.73 Yen and 69.37 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is labour force data for May.
Company news
Crown Resorts Limited
(ASX:CWN) has reached a settlement with a group of lenders who brought action to the Fontainbleau Las Vegas project.
As a result the law suit has been dismissed against the gaming and entertainment company of which James Packer is the Chairman. Shares in Crown Resorts closed 1.03 per cent lower yesterday at $15.35.
Pulse Health Limited
(ASX:PHG) will take on the operations of the North Mackay Private Hospital in a $3 million acquisition.
The private hospital and healthcare operator aims to expand its portfolio of specialist rehabilitation hospitals with the buy. It follows on from a $30 million capital raising that is part of the company’s strategy to fuel growth through acquisition. Shares in Pulse Health dropped 1.92 per cent to close at $0.51
Commodities
Gold is up $1.10 to $US1,261 an ounce for the August contract on Comex.
Silver is up $0.004 to $19.17 for July.
Copper is down $0.01 at $3.04 a pound.
Oil is up $0.05 at US$104.40 a barrel for July light crude in New York.
