With weak leads from the US and Europe the local share market is set to open in the red today. Sabre rattling on the Ukrainian border is fuelling caution and the price of US bonds pushed higher overnight which suggests risk aversion is leading investors towards bonds over equities.
As tensions rise in the Ukraine, Russia has retaliated against Western backed sanctions by imposing a ban on the import of food from a range of countries including Australia.
Global figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.5 per cent to close at 16,368, the S&P 500 lost 0.6 per cent to close at 1,910 and the NASDAQ lost 0.5 per cent to close at 4,335.
European markets closed lower : London’s FTSE lost 0.6 per cent, Paris is down 1.4 per cent and Frankfurt lost 1 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng lost 0.8 per cent, and China’s Shanghai Composite lost 1.3 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 3 points down to finish at 5,509. On the futures market the SPI is 23 points down.
Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.9268 cents, 55.08 Pence Sterling, 94.63 Yen and 69.38 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is housing finance for June and the Reserve Bank of Australia will release its Statement on Monetary Policy after its cash rate announcement on Tuesday.
Company news
Japara Healthcare Limited
(ASX:JHC) has signed a $95 million debt facility agreement with Commonwealth Bank, NAB and ANZ.
The aged-care facility operator says the funds will assist with construction developments and acquisition, as laid out in the company’s prospectus from April this year. Shares in Japara finished 1.76 per cent up yesterday at $2.31.
Bougainville Copper Limited
(ASX:BOC) has reported a net loss of $2.3 million in the first six months of 2014.
In the same period last year the copper, silver and gold miner reported a net profit of $0.5 million. The company says the first half of this year saw continued progress in stakeholder management driving towards the re-start of the Panguna mine. Shares in Bougainville Copper finished 8.86 per cent up at $0.43.
Commodities
Gold is up $4.30 to $US1,313 an ounce for the December contract on Comex.
Silver is down $0.04 to $19.99 for September.
Copper is up $0.01 at $3.18 a pound.
Oil is up $0.73 at US$97.65 a barrel for September light crude in New York.
Ex-dividends Australian Foundation Investment Company Limited
(ASX:AFI) paying 14c fully franked.
