The Australian share market looks set to retreat after Wall Street sank overnight ahead of second-quarter earnings season. Back-flipping from last week’s record rally US indexes moved lower overnight, led by losses in the tech-heavy Nasdaq. Ahead of earnings reports investors remain cautious with some analysts downwardly revising profit expectations.
Global markets
Wall Street extended this week’s losses on Tuesday: The Dow Jones Industrial Average dropped 0.7 per cent to close at 16,907, the S&P 500 dropped 0.7 per cent to close at 1,964 and the Nasdaq dropped 1.35 per cent to close at 4,392.
European markets ended lower on Tuesday: London's FTSE 100 fell 1.3 per cent, France's CAC 40 fell 1.4 per cent and Germany's DAX fell 1.4 per cent.
Asian markets closed mixed on Tuesday: Japan’s Nikkei lost 0.4 per cent, Hong Kong’s Hang Seng finished steady, and China’s Shanghai Composite added 0.2 per cent.
The Australian share market traded and ended in the red yesterday: The S&P/ASX 200 index ended 8 points lower on Tuesday at 5,511. On the futures market the SPI is 24 points lower.
Currencies
The Australian dollar hit a three-day high against the greenback yesterday and has risen further this morning at 7:30am to $US0.9403, 54.91 Pence Sterling, 95.49 Yen and 69.1 Euro cents.
Economic news due out today
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Index of consumer confidence
Company news
Responding to media speculation Elders Limited
(ASX:ELD) has confirmed it is being eyed by suitors but denied it is considering any live equity proposals. The agribusiness says it has recently received a number of informal, incomplete and confidential approaches from several parties. The approaches have proposed to participate in Elders affairs but Elders says as no approaches have been definite they are not being considered by the board. Shares in Elders closed steady at $0.225 on Tuesday and have soared 200 per cent over the past year.
Brierty Limited
(ASX:BYL) has scored a $17 million contract at Perth Airport for road infrastructure works. Starting from this month the civil and mining contractor will construct a new Airport Drive including a 1.6 kilometre road and associated infrastructure at the airport. Work is slated for completion early next year and represents the company’s 19th project at Perth Airport. Shares in Brierty closed steady at $0.40 on Tuesday and have gained 67 per cent over the past year.
Commodities
Gold has lost $0.50 to $US1,316.50 an ounce for the August contract on Comex.
Silver has eased $0.001 to $21.01 for September.
Copper has declined $0.004 to $3.26 a pound.
Oil has fallen $0.13 to $US103.40 a barrel for August light crude in New York.
