The Australian share market looks set to follow offshore leads lower at open after falls in US and European markets overnight amid fresh concerns surrounding political stability in the Eurozone. Closer to home, investors await the Reserve Bank’s interest rate decision with rates expected to remain on hold despite a reported rise in inflation yesterday.
US economic news
Factory orders grew below expectations in December, rising 1.8 per cent, below a median forecast of 2.2 per cent and helping to push US markets down yesterday.
Figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 130 points to close at 13,880, the S&P500 dropped 18 to close at 1,496 and the Nasdaq shed 48 points to close at 3,131.
European markets closed lower also: London’s FTSE lost 100 points, Paris went down by 114 points and Frankfurt dropped 195.
Asian markets closed mixed: Hong Kong’s Hang Seng lost 37 points, Tokyo’s Nikkei added 69 and China’s Shanghai Composite gained 9 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 14 points down to finish at 4,908. On the futures market the SPI is 35 points down.
Currencies
The Australian Dollar at 8:45AM was buying $US1.043 cents, 66.23 Pence Sterling, 96.35 Yen and 77.26 Euro cents.
Economic news
Reserve Bank of Australia: February board meeting and interest rate decision.
The Australian Bureau of Statistics: International trade in goods and services data for December.
The Australian Bureau of Statistics: House price indexes for the December quarter
Australian Industry Group/Commonwealth Bank: Australian Performance of Services Index (PSI) for January
Company news
Rio Tinto Limited
(ASX:RIO) has received approval from the West Australian government for the $3 billion expansion of its Nammuldi mine in the Pilbara. According to various media reports the expansion will see operations tripled at the site, with iron ore output expected to increase from 8 to 23 million tonnes annually. Shares in Rio Tinto closed 1.18 per cent higher yesterday at $67.99.
Accounting software developer Reckon Limited
(ASX:RKN) expects to lift its full year net profit by 6 per cent to $17.8 million, driven primarily by volume growth. The company has declared a final dividend of 4.75 cents per share, also up 6 per cent on last year’s payment. Shares in Reckon closed 2.45 per cent up yesterday at $2.51.
Ex Dividends today
Australian Foundation Investment Company Limited
(ASX:AFI): 8 cents fully franked
Ex Dividends tomorrow
Titan Energy Services Limited
(ASX:TTN): 2 cents fully franked
Commodities
Gold is up $5.80 to $US1,676 an ounce for the April contract on Comex. Silver is down $0.24 to $31.72 for March. Copper is down $0.02 at $3.77 a pound. Oil is down $1.60 at US$96.17 a barrel for March light crude in New York.
