News: Outlook: ASX set to resume slide south

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The Australian share market looks set to resume the month’s slide south after global markets dropped overnight. Weak eurozone business activity pushed European markets down more than 1 per cent and the falls rippled over to Wall Street. The price of iron ore has continued to fall below $US80 per tonne and the Australian dollar is at fresh seven-month lows against the greenback. 

 

Global markets

 

Wall Street moved lower on Tuesday: The Dow Jones Industrial Average fell 0.7 per cent to close at 17,056, the S&P 500 fell 0.6 per cent to close at 1,983 and the Nasdaq fell 0.4 per cent to close at 4,509.

 

European markets sank steeply on Tuesday: London's FTSE 100 retreated 1.4 per cent, France's CAC 40 retreated 1.9 per cent and Germany's DAX retreated 1.6 per cent.

 

Asian markets closed mixed following China’s better than expected PMI data: Japan’s Nikkei dipped 0.7 per cent, Hong Kong’s Hang Seng slipped 0.5 per cent, and China’s Shanghai Composite rose 0.9 per cent.

 

After falling under its 2013 closing price yesterday the Australian share market rebounded to close 1 per cent higher: The S&P/ASX 200 Index climbed 53 points to finish at 5,416 on Tuesday. On the futures market the SPI is 33 points lower. 

 

Currencies 

 

The Australian dollar at 7:25am was buying $US0.8844, 53.98 Pence Sterling, 96.29 Yen and 68.84 Euro cents.

 

Economic news due out today 

 

Reserve Bank of Australia: Financial Stability Review

 

Company news 

 

Property developer Stockland Limited (ASX:SGP) is targeting earnings per share growth of 6-7.5 per cent in the current financial year. The company has also forecast 2-3 per cent comparable net operating income growth for commercial property and a steady improvement in retirement living unit turnovers. CEO and Managing Director Mark Steinert says he is confident of delivering sustainable earnings growth above the sector average. Shares in Stockland fell 0.5 per cent to close at $4.00 on Tuesday. 

 

Industria REIT (ASX:IDR) has sold a property at Brisbane Technology Park for $10.25 million, above its book value of $9.2 million at the end of the June. The real estate investment trust plans to put the proceeds to reduce debt and settlement is slated for early December. Industria REIT says it has capitalised on the strong transaction market and appetite for well-located commercial assets within business parks offering great amenity. Shares in Industria REIT rose 0.51 per cent to close at $1.97 on Tuesday. 

 

Commodities 

 

Gold has risen $4.10 to $US1,222 an ounce for the December contract on Comex. 

Silver has added $0.01 to $17.78 for December. 

Copper has lost $0.004 to $3.04 a pound. 

Oil has gained $0.69 to $US91.56 a barrel for November light crude in New York.