The Australian share market is set to retreat after Wall Street slumped following disappointing corporate earnings and durable goods figures. In the US data also showed consumer confidence surged to a new seven-year high and new home sales rose almost 12 per cent last month.
Across commodity markets the price of iron ore has continued its decent and is now buying under $US63 per tonne. The price of copper has dropped to a five-year low while the price of perceived safe haven gold has risen.
In Australia the dollar has stayed under $US0.80 and on the economic calendar official inflation figures will be in focus when released this morning.
Global markets
Wall Street sank on Tuesday: The Dow Jones Industrial Average dropped 1.7 per cent to close at 17,387, the S&P 500 dropped 1.3 per cent to close at 2,030 and the Nasdaq dropped 1.9 per cent to close at 4,681.
European markets declined on Tuesday: London's FTSE 100 fell 0.6 per cent, France's CAC 40 fell 1.1 per cent and Germany's DAX fell 1.6 per cent.
Asian markets closed mixed on Tuesday: Japan’s Nikkei gained 1.7 per cent, Hong Kong’s Hang Seng lost 0.4 per cent, and China’s Shanghai Composite slid 0.9 per cent.
Following the Australia Day public holiday the benchmark index climbed 0.8 per cent into the trading week: The S&P/ASX 200 index gained 45 points on Tuesday to close at 5,547. On the futures market the SPI is 31 points lower.
Currencies
The Australian dollar at 8:20am was buying $US0.7928, 52.18 Pence Sterling, 93.46 Yen and 69.69 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Consumer price index for December quarter
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Company news
Shares in Lynas Corporation Limited
(ASX:LYC) sank to the benchmarks worst performer yesterday after releasing its quarterly cashflow and activities report. The rare earths producer booked revenues of $45.1 million in the December quarter, falling short of the group’s $48.3 million operational, production and administrative costs. The company continues to battle against a soft price environment and Lynas also warned it does not expect to sustain the positive operating cashflow achieved in December into the March quarter. Shares in Lynas Corporation sank 19.35 per cent to close at $0.05 on Tuesday.
Shares is Prima BioMed Limited
(ASX:PRR) lifted after announcing an imminent financial milestone payment to be received by its subsidiary Immutep from GSK. The globally active biotech company says the first subject dosing in the Phase 1 trial triggers an undisclosed single digit million dollar financial milestone payment. The development comes after Prima BioMed acquired French biopharmaceutical firm Immutep SA for about $30 million last year. Shares is Prima BioMed lifted 6.06 per cent to close at $0.035.
Ex-dividends
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.45 cent unfranked dividend
Cape Lambert Resources Limited
(ASX:CFE) paying a 2 cent fully franked dividend
Commodities
Gold has gained $14.20 to $US1,295 an ounce for the February contract on Comex.
Silver has risen $0.11 to $18.09 for March.
Copper has dropped $0.08 to $2.46 a pound.
Oil has lifted $0.82 to $US45.97 a barrel for February light crude in New York.
