Negative leads look set to push the Australian share market lower at open. Global markets saw a wobbly start to the week amid steep falls on China’s stock market. Across commodity markets precious metals prices are higher but oil is trading lower.
Wall Street closed lower on Monday: The Dow Jones Industrial Average declined 0.7 per cent to close at 17,441, the S&P 500 slipped 0.6 per cent to close at 2,068 and the Nasdaq eased 1 per cent to close at 5,040.
European markets started the week in the red: London's FTSE 100 lost 1.1 per cent, France's CAC 40 and Germany's DAX both lost 2.6 per cent.
Asian markets dropped into the new week: Japan’s Nikkei fell 1 per cent, Hong Kong’s Hang Seng fell 3.1 per cent, and China’s Shanghai Composite sank 8.5 per cent.
The Australian share market lifted from lows to end the first session of the week 0.4 per cent higher. The S&P/ASX 200 index rose 24 points to close at 5,590 on Monday. On the futures market the SPI is 41 points lower.
The Australian dollar at 7:30am was buying $US0.7272, 46.76 Pence Sterling, 89.65 Yen and 65.6 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Import and export prices for the June quarter
ANZ Banking Group (ASX:ANZ)
-Roy Morgan: Weekly read on consumer confidence
National Australia Bank Limited (ASX:NAB)
has announced it will increase variable interest rates on interest-only home loans and line of credit facilities by 29 basis points. The bank says the changes are in response to industry concerns about the pace of investor growth. NAB says it has also made the move as part of a focus on delivering responsible lending practices into the Australian housing market. Shares in National Australia Bank closed flat at $33.91 on Monday.
iiNet Limited’s (ASX:IIN)
shareholders have backed TPG Telecom Limited’s (ASX:TPM)
$1.56 billion takeover bid. TPG lobbed the original bid in April and sweetened the offer in May which was then backed by iiNet’s board. The deal remains subject to approval from Australia’s competition regulator who will hand down a decision later next month. Shares in TPG Telecom rose 0.88 per cent to close at $9.22 on Monday.
Gold has gained $7.80 to $US1,094 an ounce for the August contract on Comex.
Silver has lifted $0.02 to $14.51 for September.
Copper has eased $0.04 to $2.35 a pound.
Oil has lost $1.16 to $US46.98 a barrel for September light crude in New York.