The Australian share market looks to open lower after Wall Street fell at the end of last week and China data disappointed over the weekend. America’s major equity markets moved lower as the US and European Union tightened sanctions on Russia and ahead of this week’s US Federal Reserve policy statement. Stronger than expected US retail sales and consumer confidence figures on Friday also fuelled concerns US interest rates could rise sooner than expected.
In China the world’s second largest economy showed output growth dropped to a five-year low and retail sales also lifted less than expected. Closer to home it is a lighter week for economic news but the Reserve Bank’s meeting minutes are set for release tomorrow and Scotland’s independence vote will be in focus this week.
Global markets
Wall Street retreated 1.1 per cent over last week and extended losses on Friday: The Dow Jones Industrial Average dipped 0.4 per cent to close at 16,988, the S&P 500 fell 0.6 per cent to close at 1,986 and the Nasdaq declined 0.5 per cent to close at 4,568.
Eurozone markets tumbled 1.2 per cent over last week but ended mixed on Friday: London's FTSE 100 firmed 0.1 per cent, France's CAC 40 eased 0.07 per cent and Germany's DAX lost 0.4 per cent.
Asian markets also ended mixed at the end of last week: Japan’s Nikkei rose 0.3 per cent, Hong Kong’s Hang Seng slipped 0.3 per cent, and China’s Shanghai Composite gained 0.9 per cent.
The Australian share market dropped 1.2 per cent over last week to mark its third straight weekly loss: The S&P/ASX 200 index fell 15 points on Friday, widening the weekly drop of 68 points to close at 5,531. On the futures market the SPI is 19 points lower.
Currencies
After dropping $US0.0274 over last week the Australian dollar has fallen further against the greenback and at 7:35am was buying $US0.9014, 55.42 Pence Sterling, 96.69 Yen and 69.53 Euro cents.
Economic news due out today
Australian Bureau of Statistics: New motor vehicle sales data for August
Company news
Crown Resorts Limited’s
(ASX:CWN) Chairman James Packer will ask shareholders to cast a vote to approve the company’s proposed executive remuneration next month. The vote will take place at the casino owner and operator’s annual general meeting on October 16 in Perth. Crown has invited a number of its senior executives to participate in a long term incentive scheme from the current financial year through to FY18. Shares in Crown Resorts rose 0.4 per cent to $15.04 on Friday following the announcement.
Eyes will be on Elders Limited
(ASX:ELD) today amid expectations it will emerge from a trading halt to reveal a capital raising. The rural services company last week announced it was undertaking a bookbuild for the capital raising. Reports since emerged speculating Elders has priced its shares at 15 cents each for an equity raising totalling $57 million. Shares in Elders last traded at $0.21 before entering into a trading halt last week.
Ex-dividends
AP Eagers Limited
(ASX:APE) paying a 9 cent fully franked dividend
GWA Group Limited
(ASX:GWA) paying a 5.5 cent fully franked dividend
Gazal Corporation Limited
(ASX:GZL) paying an 11 cent fully franked dividend
Leighton Holdings Limited
(ASX:LEI) paying a 57 cent, 25 per cent franked dividend
Patties Foods Limited
(ASX:PFL) paying a 3.9 cent fully franked dividend
Royalco Resources Limited
(ASX:RCO) paying a 1 cent fully franked dividend
Slater & Gordon Limited
(ASX:SGH) paying a 5 cent fully franked dividend
Servcorp Limited
(ASX:SRV) paying an 11 cent, 35 per cent franked dividend
Commodities
After dropping $US27 over last week the price of gold has declined $7.50 to $US1,231.50 an ounce for the December contract on Comex.
Silver has added $0.01 to $18.61 for December.
Copper has lifted $0.01 to $3.11 a pound.
Oil has lost $0.56 to $US92.27 a barrel for October light crude in New York.
