US stocks have provided ASX a negative lead dipping lower on energy shares after the oil price closed at its lowest level in over two years. European markets posted modest gains while commodity prices were mixed with a slight lift in the iron ore price. The SPI is pointing to the Australian stock market opening lower this morning ahead of a speech from Reserve Bank governor Glen Stevens.
US economic news
Consumer prices rose just 0.1 per cent in September as fuel prices plunged. Inflation is still below Federal Reserve targets with no impetus to raise rates just yet.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.9 per cent to close at 16,461, the S&P 500 lost 0.7 per cent to close at 1,927 and the NASDAQ lost 0.8 per cent to close at 4,383.
European markets closed up: London’s FTSE rose 0.4 per cent, Paris gained 0.6 per cent and Frankfurt also lifted 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 2.6 per cent, Hong Kong’s Hang Seng rose 1.4 per cent, and China’s Shanghai Composite dipped 0.6 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 61 points up to finish at 5,386. On the futures market the SPI is 28 points lower.
Turning to currencies and the Australian Dollar at 7:45AM was buying 87.77 US cents, 54.7 Pence Sterling, 94.02 Yen and 69.41 Euro cents.
Australian economic news
Due out today from NAB is the latest business survey for the September quarter and the Housing Industry Association and RP Data will release their residential land report for the June quarter.
Company news
Federation Centres
(ASX:FDC) says annual sales growth for the year to 30th September was 1 per cent with specialty retailers recording a rise of 1.6 per cent. The occupancy rate stands at 99.4 per cent. CEO and Managing Director Glen Sewell said the improvement in the figures comes from the disposal of non-core assets and acquisitions of more quality. Board approval had been received for the next two projects, Warriewood in NSW and Colonnades in South Australia with further plans for the $1.3 billion redevelopment progressing well.’ Shares in Federation Centres closed 1.15 per cent stronger yesterday at $2.65.
Fletcher Building Limited
(ASX:FBU) have painted a glowing picture in their annual report highlighting a a 4 per cent rise in earnings to $592 million for the 2014 financial year. Operating earnings were up by ten per cent whilst net earnings rose by 11 per cent. Australian earnings were down 16 per cent to $171 million, New Zealand business jumped 27 per cent whilst international revenue was up by 14 per cent. Current chairman Ralph Waters will retire this month. Sir Ralph Norris, previously of Commonwealth Bank, will take his position. Shares in Fletcher Building closed flat yesterday at $7.77.
Ex-dividends One company is trading ex-dividend today: PPK Group Limted
(ASX:PPK) Will pay a fully franked dividend of 2 cents.
Commodities
Gold is down $6.20 to $US1,245.50 an ounce for the December contract on Comex. Silver is down $0.32 to $17.23 for December. Copper is down $0.01 at $3.02 a pound. Oil is down $1.97 at US$80.52 a barrel for December light crude in New York.
