News: Outlook: Oil decline woes to weigh on ASX

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The Australian share market looks to open lower after global markets fell and the price of oil sank to new five-year lows. Wall Street dropped in volatile trade amid data showing industrial production jumped more than expected in November. US crude prices retreated and the price of precious metals pulled back as the US dollar strengthened and put pressure on the Australian dollar. In the session ahead the spotlight will turn to Australia’s central bank who will release minutes from the latest policy meeting. 

 

Global markets

 

Wall Street moved lower on Monday: The Dow Jones Industrial Average fell 0.6 per cent to close at 17,181, the S&P 500 fell 0.6 per cent to close at 1,990 and the Nasdaq fell 1 per cent to close at 4,605.

 

European markets plunged into the trading week: London's FTSE 100 dropped 1.9 per cent, France's CAC 40 dropped 2.5 per cent and Germany's DAX dropped 2.7 per cent.

 

Asian markets closed mixed on Monday: Japan’s Nikkei sank 1.6 per cent, Hong Kong’s Hang Seng retreated 1 per cent, and China’s Shanghai Composite gained 0.5 per cent.

 

The Australian share market started the week in the red: The S&P/ASX 200 index dropped 34 points to close at 5,186 on Monday. On the futures market the SPI is 36 points lower. 

 

Currencies 

 

The Australian dollar at 8:25am was buying $US0.8214, 52.55 Pence Sterling, 96.79 Yen and 66.08 Euro cents.

 

Economic news due out today 

 

Reserve Bank of Australia: December board meeting minutes

 

ANZ Banking Group (ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey

Company news

Ten Network Holdings Limited (ASX:TEN) has secured new and returning sponsors for its exclusive coverage of the KFC T20 Big Bash League which starts this Thursday. The media company says KFC Australia and Holden will return as sponsors for the summer season of cricket. New sponsors include Harvey Norman Holdings Limited (ASX:HVN), Woolworths Limited (ASX:WOW), Sportsbet and Foxtel. The British Sausage Company in Perth and Queensland Government have also signed on. Shares in Ten Network Holdings rose 2.44 per cent yesterday to close at $0.21 following the announcement. 

 

Treasury Wine Estates Limited (ASX:TWE) will today hold its annual general meeting where it is expected to outline its strategy for the coming year. Australia’s largest listed wine maker scrapped all takeover talks with its suitors in September after determining there was no offer on terms and at a price acceptable to the board. At the time Chairman Paul Rayner said year-to-date performance was tracking ahead of plan. Shares in Treasury Wine Estates slipped 0.22 per cent yesterday to close at $4.61 ahead of today’s meeting. 

 

Commodities 

Gold has dipped $28.80 to $US1,194 an ounce for the February contract on Comex. 

Silver has slipped $0.87 to $16.18 for March. 

Copper has eased $0.06 to $2.86 a pound. 

Oil has dropped $1.82 to $US56.26 a barrel for January light crude in New York.