The Australian share market looks poised to extend the month and week’s falls and erase the year’s gains (2013 close: 5,352) following negative global leads. Fears over a potential slowdown in China continued to unnerve traders and has pushed the local currency under $US0.89 for the first time since March this year. The mining sector is also set to come under pressure today with the price of iron ore sinking below $US80 per tonne for the first time since 2009. Attention will be fixed on the ‘flash’ HSBC China manufacturing PMI for September due around noon amid expectations for a slight fall.
Global markets
Wall Street fell into the new week: The Dow Jones Industrial Average dropped 0.6 per cent to close at 17,173, the S&P 500 dropped 0.8 per cent to close at 1,994 and the Nasdaq dropped 1.1 per cent to close at 4,528.
European markets moved lower on Monday: London's FTSE 100 declined 0.9 per cent, France's CAC 40 fell 0.4 per cent and Germany's DAX declined 0.5 per cent.
Asian markets began the week in the red: Japan’s Nikkei slid 0.7 per cent, Hong Kong’s Hang Seng tumbled 1.4 per cent, and China’s Shanghai Composite sagged 1.7 per cent.
The Australian share market sank 1.3 per cent into the new week: The S&P/ASX 200 index plunged 70 points to close at 5,363 on Monday. On the futures market the SPI is 8 points lower.
Currencies
The Australian dollar at 7:25am was buying $US0.8871, 54.25 Pence Sterling, 96.55 Yen and 69.08 Euro cents.
Economic news due out today
ANZ Banking Group
(ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey
Company news
Kathmandu Holdings Limited (ASX:KMD, NZX:KMD) is expected to today unveil its full year results. The outdoor equipment retailer last month upwardly revised its annual earnings guidance and forecast a net operating profit after tax between $39.5 million to $42.5 million. At the time the company said its sales had been supported by run of cold weather in July which look to translate to improved earnings. Full year results are also expected today from agricultural chemicals supplier Nufarm Limited
(ASX:NUF) and telecommunications company TPG Telecom Limited
(ASX:TPM). Shares in Kathmandu Holdings rose 1.77 per cent to close at $2.87 on Monday.
Supermarket giant Woolworths Limited
(ASX:WOW) has revealed its chief’s pay jumped in the 2014 financial year. CEO Grant O’Brien scored a 10 per cent pay rise over the year and took home $5.3 million. The remuneration comprises of a $2.3 million salary, $2.06 million cash bonus and shares. Over last year Wollies net profit climbed 8.5 per cent to $2.45 billion and the company forecast profit growth ahead. Shares in Woolworths slipped 0.77 per cent to close at $34.80 on Monday.
Ex-dividends
Alliance Aviation Limited
(ASX:AQZ) paying a 2.1 cent fully franked dividend
Dicker Data Limited
(ASX:DDR) paying a 1.85 cent fully franked dividend
Commodities
Gold has gained $1.30 to $US1,218 an ounce for the December contract on Comex.
Silver has dipped $0.07 to $17.77 for December.
Copper has slipped $0.05 to $3.04 a pound.
Oil has lost $0.89 to $US91.52 a barrel for October light crude in New York.
