Following weak leads from US markets after the Federal Reserve maintained an upbeat outlook for US growth, the Australian share market is set to open slightly lower this morning.
US economic news
US Federal Reserve has ended its two day policy meeting with news that it feels the economy is strong enough for quantitative easing to come to an end. However the central bank remains committed to low interest rates saying it would not raise them for ‘a considerable time’ after the end of its stimulus program meaning.
The figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 16,974, the S&P 500 dipped 0.1 per cent to close at 1,982 and the NASDAQ lost 0.3 per cent to close at 4,549.
European markets closed mixed : London’s FTSE firmed 0.8 per cent, Paris slid 0.05 per cent and Frankfurt added 0.16 per cent.
Asian markets closed higher: Tokyo’s Nikkei advanced 1.5 per cent, Hong Kong’s Hang Seng lifted 1.3 per cent, and China’s Shanghai Composite rose 1.5 per cent.
The Australian share market closed a little lower yesterday: The S&P/ASX 200 Index closed 5 points down to finish at 5,448. On the futures market the SPI is 1 point higher.
Currencies
The Australian Dollar at 7:20AM was buying 87.94 US cents, 54.94 Pence Sterling, 95.77 Yen and 69.61 Euro cents.
Economic news
Due out today from ABS are international trade price indexes for September while the Housing Industry Association will release new home sales, also for September.
Company news
Santos Limited
(ASX:STO) has paid New Standard Energy Limited
(ASX:NSE) $7.5 million for an operating stake in the PEL 570 project in South Australia’s Cooper Basin. The deal gives Santos a 35 per cent stake in the project and Santos will meet 75 per cent of the remaining spend in New Standards earn in obligations totaling just over $42 million. The deal leaves New Standard with a 17.5 per cent portion, DrillSearch Energy holds the remaining 47.5 per cent of the project. Shares in Santos
(ASX:STO) last traded 0.78 per cent higher at $12.92 yesterday.
Medical device company Analytica Limited
(ASX:ALT) says it is ready to move with a clinical trial of its Pericoach system. The device can help with management of stress urinary incontinence in women and will take place with 100 participants across 10 sites in Australia. Analytica recently announced a MOU with SportsMed Global, an elite athlete software provider to examine the integration of the Pericoach application into their system. Shares in Analytica ended 3.12 per cent stronger on Wednesday at $0.03.
Ex-dividends 2 companies are going ex-dividend today: Harvey Norman Holdings Limited
(ASX:HVN) will pay a dividend of 8 cents fully franked while Joyce Corporation
(ASX:JYC) will return 2.1 cents un-franked.
Commodities
Gold is down $17.70 to $US1,212 an ounce for the December contract on Comex. Silver is down $0.15 to $17.08 for December. Copper is down $0.01 at $3.07 a pound. Oil is up $0.62 at US$82.04 a barrel for December light crude in New York.
