Australian stocks to follow offshore slumps
The Australian stock market is set to go down today after receiving strongly negative leads from offshore trading overnight. Wall Street dived, oil fell below $US75, and metals were generally lower with only gold futures posting a rise.
On the Sydney Futures Exchange Friday morning, the September share price index contract lost 67 points at 4387. Yesterday, the major local indices each gained about a tenth of a percentage point.
In economics news today, Reserve Bank of Australia Deputy Governor Ric Battellino delivers a speech in Brisbane at the Moreton Bay Better Business Luncheon.
The Melbourne Institute announces its bulletin of economic trends.
The Australian Office of Financial Management reveals details of the August 2010 bond line, and conducts a tender of $700 million bonds maturing on June 2016.
In equities news, ANZ Banking Group gives its June quarter trading update.
Annual results, meanwhile, are expected to be released from Peet, Billabong International, Specialty Fashion Group, Prime Media Group, Consolidated Media Holdings, Spotless Group, Austal Ships, Charter Hall Retail Trust DUET Group, and Telecom Corporation of New Zealand.
IRESS Market Technology reports half-year results, while MAp Group publishes its July traffic data.
In Adelaide, Mineralogy head Clive Palmer speaks at an AMCHAM Internode Business Luncheon.
Weak leads and election-eve jitters would see broad-based declines that could be critical for stocks such as Telstra, according to RBS Morgans investment adviser Todd Kerslake.
"The Coalition is saying it will get rid of the National Broadband Network," while "Labor is saying they'll keep it. That has a material impact on that stock."
Mr Kerslake said the recent slump came despite relatively strong earnings reports.
"We've seen some cracking results from some of the bigger companies. Unfortunately the market is just ignoring it at the moment.''
Yesterday, the Australian bourse finished flat amid mixed company earnings reports and fears over BHP Billiton's credit rating in light of its takeover bid for Canada's PotashCorp.
The benchmark S&P/ASX200 index was up 4.1 points, or 0.09 per cent, at 4479 points, while the broader All Ordinaries index had added 5.7 points, or 0.13 per cent, to 4509.6 points.