News: Outlook: Global markets gain as iron ore falls

.

The Australian share market looks set for an uncertain start to the session after global markets gained overnight but the price of iron ore fell. European markets were buoyed by better than expected German confidence data and news UK inflation remains under the central bank’s target. Wall Street rose as US producer prices were shown to have risen last month, but the major benchmarks ended off the day’s highs. Across commodity markets the price of iron ore has dropped 4 per cent and is now sitting below $US75 per tonne for the first time since 2009. On the company front financial results are due from Orica and James Hardie while those holding annual general meetings include BC Iron, Cash Converters, Duet Group and Flexigroup. 

 

Global markets

 

Wall Street lifted on Tuesday: The Dow Jones Industrial Average rose 0.2 per cent to close at 17,688, the S&P 500 rose 0.5 per cent to close at 2,052 and the Nasdaq rose 0.7 per cent to close at 4,702.

 

European markets gained ground on Tuesday: London's FTSE 100 added 0.6 per cent, France's CAC 40 climbed 0.9 per cent and Germany's DAX jumped 1.6 per cent.

 

Asian markets ended mixed on Tuesday: Japan’s Nikkei soared 2.2 per cent, Hong Kong’s Hang Seng fell 1.1 per cent, and China’s Shanghai Composite dropped 0.7 per cent.

 

The Australian share market continued to slide into the red yesterday and closed 0.2 per cent lower: The S&P/ASX 200 index closed 12.8 points down to finish at 5,399.7. On the futures market the SPI is 8 points higher. 

 

Currencies

 

The Australian dollar at 8:25am was buying $US0.8727, 55.83 Pence Sterling, 101.98 Yen and 69.63 Euro cents.

Economic news due out today 

 

Westpac Banking Corporation (ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity 

 

Company news

 

IMF Bentham Limited (ASX:IMF) has welcomed the latest Federal Court ruling concerning the settlement of a National Australia Bank Limited (ASX:NAB) class action. The commercial litigation funder says NAB customers who have not registered for the class action can still do so on the same terms. Just last week NAB said it was set to settle a class action led by law firm Maurice Blackburn to return unfair late payment fees to its customers. Shares in IMF Bentham closed steady at $2.10 on Tuesday just after the announcement was made.  

 

DEXUS Property Group (ASX:DXS) says it has settled the sale of its remaining offshore property. The news comes after the real estate investor settled the sale of the Lumley Centre in Auckland, New Zealand for about $133 million. DEXUS Property Group plans to put the proceeds of the sale to repaying debt. Shares in DEXUS Property Group rose 0.14 per cent to close at $7.15 on Tuesday, after the announcement was released. 

 

Ex-dividends
 

Australian Masters Yield Fund Number 1 Limited (ASX:AYD) paying a 95 cent fully franked dividend

Australian Masters Yield Fund Number 2 Limited (ASX:AYH) paying a 90 cent fully franked dividend

Australian Masters Yield Fund Number 3 Limited (ASX:AYJ) paying a 120 cent fully franked dividend

Australian Masters Yield Fund Number 4 Limited (ASX:AYK) paying a 71 cent fully franked dividend

Z Energy Limited (ASX:ZNZ) paying a 6.89 cent unfranked dividend

 

Commodities 

 

Gold has gained $13.60 to $US1,197 an ounce for the December contract on Comex. 

Silver has risen $0.12 to $16.17 for December. 

Copper has dipped $0.04 to $3.00 a pound. 

Oil has slipped $1.03 to $US74.61 a barrel for December light crude in New York.