The Australian share market is set to extend last week’s losses and open sharply lower as plunging commodity prices weigh heavily on the economy.
Sliding oil prices and weaker Chinese industrial activity are signalling a global economic slowdown with US markets also in retreat.
US economic news
The US Senate passed a $1.1 trillion bill to fund most of the U.S. government through September late Saturday US time, averting a government shutdown. And lower gas prices in the US boosted the University of Michigan December survey of US Consumer sentiment to 93.8 points, its highest read since the GFC.
Markets
Wall Street closed down on Friday: The Dow Jones Industrial Average fell 1.8% to close at 17,281, the S&P500 fell 1.6 per cent to close at 2002 and the Nasdaq lost 1.2 per cent to close at 4,654.
European markets closed down: London’s FTSE 100 fell 2.5 per cent, Paris fell 2.8 per cent and Frankfurt fell 2.7 per cent.
Asian markets were mixed on Friday: Tokyo’s Nikkei rose 0.7 per cent, Hong Kong’s Hang Seng fell 0.3 per cent, and China’s Shanghai Composite rose 0.4 per cent.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 11.points down to finish at 5,220, dropping 116 points on the week. On the futures market the SPI is 63 points down.
Currencies
Australian Dollar at 8:30AM was buying 82.5 US cents cents, 52.48 Pence Sterling, 97.91 Yen and 66.14 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics are motor vehicle sales for November.
Company news
Recall Holding Limited
(ASX:COM) has announced a takeover offer in a combination of cash and shares. The global provider of information and document management solutions received a non biding indicative offer of $7.00 per share offer from US competitor Iron Mountain. Recall have today rejected the offer saying it materially undervalues the company and does not represent an adequate premium considering Recall’s ability to deliver double digit revenue growth. Shares in Recall Holding Limited
(ASX:COM) closed flat on Friday at $6.40.
Ex dividends 3 companies are going ex-dividend today Calliden Group
(ASX:CIX) will pay 5 cents fully franked, IronBark Capital
(ASX:IBC) Will pay 2 cents fully franked and Ruralco Holdings
(ASX:RHL) will pay 8 cents, also fully franked.
Commodities
Gold is down $3.10 to $US1,223 an ounce for the February contract on Comex. Silver is down $0.08 to $17.04 for March. Copper is up $0.01 at $2.93 a pound. Oil is down $2.11 at US$58.08 a barrel for January light crude in New York.
