Outlook: Wall St sell-off to weigh on ASX

Market Reports

The Australian share market looks set to move south at open after Wall Street sank more than 1 per cent overnight. US traders absorbed weaker than expected manufacturing and construction reports but a stronger than expected ADP private sector jobs report. 
 
The Australian dollar rose above $US0.87 in response, rebounding from an eight-month low yesterday following a weak local retail sales report. Elsewhere in the world Hong Kong’s pro-democracy protests continued, conflict in the Middle East remained in focus and America’s first case of Ebola was confirmed.  
 
Global markets
 
Wall Street’s major indexes sank on Wednesday: The Dow Jones Industrial Average dropped 1.4 per cent to close at 16,805 the S&P 500 dropped 1.3 per cent to close at 1,946 and the Nasdaq dropped 1.6 per cent to close at 4,422.
 
European markets moved lower on Wednesday: London's FTSE 100 fell 1 per cent, France's CAC 40 fell 1.2 per cent and Germany's DAX fell 1 per cent.
 
Across Asian markets: Japan’s Nikkei declined 0.6 per cent and Hong Kong’s Hang Seng and China’s Shanghai Composite will get back to trading today after public holidays.
 
The Australian share market staged a recovery and moved out of the red yesterday to close 0.8 per cent higher: The S&P/ASX 200 index ended 41 points stronger at 5,334 on Wednesday. On the futures market the SPI is 35 points lower. 
 
Currencies 
 
The Australian dollar at 7:15m was buying $US0.8736, 53.98 Pence Sterling, 95.13 Yen and 69.25 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Building approvals data for August and international trade in goods and services data for August
 
Housing Industry Association: New home sales report
 
Company news
 
Echo Entertainment Group Limited (ASX:EGP) has tied up the $70 million sale of its Jupiter Townsville complex to Colonial Leisure Group. The casino operator announced the deal in January but the transaction which was subject to regulatory approvals which have now been obtained. At the time of announcing the sale Echo forecast it would book a pre-tax profit of about $8 million after transaction costs. The company said it made the divestment due to the assets limited expansion opportunities. Shares in Echo Entertainment Group gained 0.61 per cent to close at $3.30 on Wednesday following the announcement. 
 
PanAust Limited (ASX:PNA) will suspend mining, processing and maintenance operations at its Phu Kham Copper-Gold Operation in Laos for 48 hours following a security incident. The mining company says the incident occurred at the project’s accommodation camp during which an employee was wounded. PanAust has not explained why but says law enforcement agencies are investigating and the employee has been evacuated to a hospital in Thailand. Shares in PanAust fell 3.85 per cent to close at $1.875 on Wednesday following the announcement. 
 
Ex-dividends today
 
Empired Limited (ASX:EPD) paying a 1 cent fully franked dividend
Sims Metal Management Limited (ASX:SGM) paying a 10 cent fully franked dividend
Webster Limited (ASX:WBA) paying a 2 cent fully franked dividend
 
Ex-dividends tomorrow
 
Brierty Limited (ASX:BYL) paying an 8 cent fully franked dividend
McPherson's Limited (ASX:MCP) paying a 5 cent fully franked dividend
Money3 Corporation Limited (ASX:MNY) paying a 2.5 cent fully franked dividend
Nick Scali Limited (ASX:NCK) paying a 7 cent fully franked dividend
OrotonGroup Limited (ASX:ORL) paying an 8 cent fully franked dividend
Reece Australia Limited (ASX:REH) paying a 42 cent fully franked dividend
SG Fleet Group Limited (ASX:SGF) paying a 4 cent fully franked dividend
Sirtex Medical Limited (ASX:SRX) paying a 14 cent fully franked dividend
Watermark Market Neutral Fund Limited (ASX:WMK) paying a 2.5 cent fully franked dividend
 
Commodities 

Gold has gained $3.90 to $US1,215.50 an ounce for the December contract on Comex.
Silver has lifted $0.20 to $17.26 for December. 
Copper has firmed $0.02 to $3.04 a pound. 
Oil has lost $0.43 to $US90.73 a barrel for November light crude in New York.