Australian shares are set to edge higher at the open following a paced sell off on Wall Street. In the US, the weekly jobless claims report showed nearly 30 million people were on unemployment benefits at the end of August. US home building fell in August following strong gains in the prior three months. The housing market has been bolstered by record-low interest rates. The demand for properties in the suburbs and low-density areas continues to climb as many people embrace working from home.
To the figures from around the globe: Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.5 per cent, the S&P 500 fell 0.8 per cent and the NASDAQ closed 1.3 per cent lower.
European markets closed lower, London’s FTSE fell 0.5 per cent, Paris lost 0.7 per cent and Frankfurt closed 0.4 per cent lower.
Asian markets closed lower, Tokyo’s Nikkei fell 0.7 per cent, Hong Kong’s Hang Seng dropped 1.6 per cent and China’s Shanghai Composite closed 0.4 per cent lower.
Taking all of this into equation, the SPI futures are pointing to 0.3 per cent gain.
Yesterday, the Australian share market closed 1.2 per cent lower at 5883.
IT solutions company, Webcentral Group (ASX:WCG) has received an updated takeover offer from Web.com, which is now offering 18 cents per Webcentral share. The Webcentral board has advised that the competing proposal from telecommunications carrier 5G Networks (ASX:5GN) is superior for shareholders. It entered into a bid implementation deed yesterday, a copy of which was released to the market last night. Shares in Webcentral Group (ASX:WCG) were placed on the trading halt yesterday and last traded at 16.5 cents.
One Australian Dollar at 6:55 AM was buying 73.11 US cents, 56.38 Pence Sterling, 76.57 Yen and 61.73 Euro cents.
Iron Ore lost 1.5 per cent to US$122.36.
Iron Ore futures suggest a 0.8 per cent gain.
Gold has dropped $18.50 to US$1952 an ounce.
Silver was down $0.22 to US$27.26 an ounce.
Oil was up $0.80 to US$40.96 a barrel.