The Australian share market looks to head lower today after Wall Street retreated from record highs. The Dow posted its largest one-day percentage drop in more than a month and the S&P 500 and Nasdaq also declined. Conflict in Iraq weighed on sentiment and offset positive economic news showing higher house prices and consumer sentiment at pre-GFC highs. There is no major local economic news scheduled today and across currencies the Australian dollar has dipped below $US0.94.
Global markets
Wall Street fell into the red on Tuesday: The Dow Jones Industrial Average dropped 119 points to close at 16,818, the S&P 500 dropped 13 points to close at 1,950 and the Nasdaq dropped 18 points to close at 4,350.
European markets closed mixed on Tuesday: London's FTSE 100 lost 13 points, France's CAC 40 added 3 points and Germany's DAX added 17 points.
Asian markets moved higher on Tuesday: Japan’s Nikkei gained 7 points, Hong Kong’s Hang Seng gained 76 points, and China’s Shanghai Composite gained 10 points.
The Australian share market traded in the red and ended 0.4 per cent down yesterday: The S&P/ASX 200 index fell 21 points on Tuesday to close at 5,433. On the futures market the SPI is pointing 27 points lower.
Currencies
The Australian dollar at 7:20am was buying $US0.9369, 55.18 Pence Sterling, 95.51 Yen and 68.88 Euro cents.
Economic news due out today
Federal Government: Skilled Vacancies index for May
Company news
Speculation is mounting BHP Billiton Limited
(ASX:BHP) is preparing to slash thousands of jobs from its iron ore division. In the wake of the declining iron ore price Australia’s largest miner is understood to be undertaking a review of its operations likely to result in job cuts. Reports suggest up to 3,000 jobs could be shed from the miner’s iron ore division which currently has a workforce of about 16,000. Shares in BHP Billiton firmed 0.03 per cent on Tuesday to close at $36.46.
Santos Limited
(ASX:STO) says its $20 billion Gladstone LNG project in Queensland is on track for first liquefied natural gas in 2015. The oil and gas producer has reported strong construction progress across the integrated project this year and notes better than expected performance from the Fairview wells. Santos has a 30 per cent stake in the project and its project partners include Petronas, Total and Kogas. Shares in Santos slipped 0.7 per cent on Tuesday to close at $14.18.
Ex-dividends
G8 Education Limited
(ASX:GEM) paying a 4.5 cent fully franked dividend
Commodities
Gold has gained $2.90 to $US1,321.30 an ounce for the August contract on Comex.
Silver has added $0.13 to $21.04 for July.
Copper has firmed $0.001 to $3.15 a pound.
Oil has dipped $0.14 to $US106.03 a barrel for August light crude in New York.
