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The SPI is pointing to a steady start for the Australian share market after Wall Street lifted from the lows of the session. Wall Street was initially struck by steep falls across European markets and especially Greece’s benchmark posting its largest loss in almost three decades. Declining oil prices continued to weigh on sentiment amid concerns for the strength of the global economy. China’s market retreated from highs to book its biggest loss in five years yesterday as the iron ore price continued to stay under $US70 per tonne.
Global markets
Wall Street closed mixed on Tuesday: The Dow Jones Industrial Average ended 0.3 per cent lower at 17,801, the S&P 500 finished 0.02 per cent down at 2,060 and the Nasdaq gained 0.5 per cent by close to finish at 4,766.
European markets sank steeply on Tuesday: London's FTSE 100 retreated 2.1 per cent, France's CAC 40 retreated 2.6 per cent and Germany's DAX retreated 2.2 per cent.
Asian markets declined on Tuesday: Japan’s Nikkei dropped 0.7 per cent, Hong Kong’s Hang Seng dropped 2.3 per cent, and China’s Shanghai Composite tumbled 5.4 per cent.
The Australian share market plunged 1.7 per cent to end near session lows yesterday: The S&P/ASX 200 index slumped 90 points on Tuesday to close at 5,283. On the futures market the SPI is 4 points higher.
Currencies
The Australian dollar at 8:20am was buying $US0.8295, 52.96 Pence Sterling, 99.22 Yen and 67.06 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance data for October
Westpac-Melbourne Institute: Survey of Consumer Sentiment
Company news
Santos Limited (ASX:STO) says its financial position has been unaffected by a credit rating change from Standard & Poor’s. The oil and gas producer’s stock has recently slumped in the wake of a declining oil price and touched a 10-year low yesterday after the ratings cut. Santos responded by highlighting its robust funding position and said S&P had noted project execution risks are diminishing following developments at PNG LNG and GLNG this year. Shares in Santos sank 7.23 per cent on Tuesday to close at $7.70.
Aveo Group (ASX:AOG) has tied up the sale of a three storey commercial building in Sydney for $20 million. The retirement communities owner, operator and manager says the settlement continues its non-retirement asset sale program. Aveo Group is targeting the disposal of the remaining three-non-retirement assets by the end of next year as part of its transformation to a pure retirement group. Shares in Aveo Group fell 2.34 per cent on Tuesday to close at $2.09.
Ex-dividends
Harvey Norman Holdings Limited (ASX:HVN) paying a 14 cent fully franked dividend
Commodities
Gold has gained $35.60 to $US1,231 an ounce for the February contract on Comex.
Silver has lifted $0.79 to $17.07 for March.
Copper has firmed $0.04 to $2.92 a pound.
Oil has risen $0.84 to $US63.89 a barrel for January light crude in New York.
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