The Australian share market looks set to regain the slide south after Wall Street dropped overnight. Geopolitical concerns were back in the spotlight amid reports Russia could be preparing to invade Ukraine. Russia’s dominant role in the energy sector put pressure on energy stocks and all major US indexes closed steeply lower. On the local front it is a quiet day on the economic calendar ahead of local jobs numbers tomorrow.
Global markets
Wall Street moved lower on Tuesday: The Dow Jones Industrial Average fell 0.8 per cent to close at 16,429, the S&P 500 fell 1 per cent to close at 1,920 and the Nasdaq fell 0.7 per cent to close at 4,353.
European markets rose on Tuesday: London's FTSE 100 gained 0.07 per cent, France's CAC 40 gained 0.4 per cent and Germany's DAX gained 0.4 per cent.
Asian markets closed mixed on Tuesday: Japan’s Nikkei lost 1 per cent, Hong Kong’s Hang Seng added 0.2 per cent, and China’s Shanghai Composite lost 0.2 per cent.
The Australian share market ended near session lows after the Reserve Bank kept the cash rate at a record low of 2.5 per cent yesterday: The S&P/ASX 200 index dropped 22 points to 5,519 on Tuesday. On the futures market the SPI is 31 points lower.
Currencies
The Australian dollar at 7:15am was buying $US0.9306, 55.14 Pence Sterling, 95.48 Yen and 69.6 Euro cents.
Economic news due out today
Housing Industry Association: Trades report for the June quarter
Company news
Fortescue Metals Group Limited
(ASX:FMG) chief has outlined plans to halve its energy costs as part of its continued to focus on efficiency and productivity. CEO Nev Power says the Pilbara focussed iron ore miner could save $US400 million by moving from diesel to gas. Mr Power told the Diggers and Dealers mining conference in Western Australia yesterday the company is also focussed on paying down debt. Fortescue plans to pay down more than $2 billion in the following two years to take its gearing below 40 per cent. Shares in Fortescue Metals Group declined 0.84 per cent to $4.70 on Tuesday.
Seven West Media Limited
(ASX:SWM) has this week announced a long-term partnership with the Olympic Games for the coming decade. The television platform says it has inked an all-encompassing deal for rights across all media platforms for 2016 and 2020 Olympic Games and the 2018 Olympic Winter Games. Seven has also secured an option with the International Olympic Committee to extend the partnership to 2024. CEO Tim Worner says the Olympic Games deliver the biggest audiences, marketing and advertising partnerships and the monetization of the company’s rights has already begun. Shares in Seven West Media declined 2.49 per cent to $1.96 on Tuesday.
Ex-dividends today
Alcoa Inc.
(ASX:AAI) paying a 2.25 cent unfranked dividend
Ex-dividends tomorrow
Ozgrowth Limited
(ASX:OZG) paying a 0.75 cent fully franked dividend
Westoz Investment Company Limited
(ASX:WIC) paying a 4.50.75 cent fully franked dividend
Commodities
Gold has fallen $3.60 to $US1,285 an ounce for the December contract on Comex.
Silver has lost $0.13 to $20.23 for September.
Copper has eased $0.04 to $3.20 a pound.
Oil has declined $0.91 to $US97.38 a barrel for September light crude in New York.
