News: Outlook: ASX set to continue descent

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The Australian share market is set to continue its descent into the red after Wall Street ended a volatile session near the day’s low. As the oil price bounced the gold and iron ore price continued to retreat and the Australian dollar remained weak against the greenback. Following the release of the RBA’s meeting minutes yesterday attention will now turn to America’s central bank ahead of a policy statement due for release tomorrow.   

 

Global markets

 

Wall Street erased the day’s gains and sank on Tuesday: The Dow Jones Industrial Average dropped 0.7 per cent to close at 17,069, the S&P 500 dropped 0.9 per cent to close at 1,973 and the Nasdaq dropped 1.2 per cent to close at 4,548.

 

European markets gained momentum on Tuesday: London's FTSE 100 gained 2.4 per cent, France's CAC 40 gained 2.2 per cent and Germany's DAX gained 2.5 per cent.

 

Asian markets put in a mixed trading performance on Tuesday: Japan’s Nikkei plunged 2 per cent, Hong Kong’s Hang Seng sank 1.6 per cent, and China’s Shanghai Composite jumped 2.3 per cent.

 

The Australian share market widened the week’s falls on Tuesday: The S&P/ASX 200 index dropped 34 points to close at 5,152. On the futures market the SPI is 17 points lower. 

 

Currencies

The Australian dollar at 8:20am was buying $US0.8223, 52.24 Pence Sterling, 95.69 Yen and 65.71 Euro cents.

 

Economic news due out today 

 

Australian Bureau of Statistics: International merchandise imports figures for November
 

Westpac-Melbourne Institute: Leading Indexes of Economic Activity

Housing Industry Association: Trades report for September quarter

 

Company news

 

360 Capital Office Fund (ASX:TOF) has inked a deal to buy a central Melbourne property for $46.5 million which is expected to settle in the first quarter. 576 Swan Street, Richmond is described as an A-grade building which is fully leased and has more than 200 on-site car spaces. The company says the acquisition aligns with its strategy of buying quality A-grade suburban office assets in proven leasing markets. Shares in 360 Capital Office Fund fell 1.46 per cent to close at $2.03 yesterday ahead of the announcement. 

 

Buderim Ginger Limited (ASX:BUG) has tied up the $US4.5 million acquisition of the Kapua Macadamia Orchard. The confectionery ginger company says the purchase includes land, buildings and improvements, macadamia trees and harvested nuts. Buderim Ginger believes the buy will strengthen its position toward a vertically integrated, macadamia nut processor, supporting its retail products and brands. Shares in Buderim Ginger closed steady at $0.65 yesterday ahead of the announcement. 

 

Ex-dividends

Dicker Data Limited (ASX:DDR) paying a 2 cent fully franked dividend. 

 

Commodities 

Gold has declined $10.60 to $US1,197 an ounce for the February contract on Comex. 

Silver has slipped $0.81 to $15.76 for March. 

Copper has pulled back $0.02 to $2.86 a pound. 

Oil has gained $0.13 to $US56.39 a barrel for January light crude in New York.