By finance reporter Rebecca HyamUpdated February 22, 2013 09:25:37
The Australian share market looks unlikely to bounce back straight after yesterday’s big fall, with more weak leads from overseas.
Signs of further weakness in Europe and lingering concerns about the latest US Federal Reserve minutes have hurt global share markets overnight.
A report on the euro area’s economy signalled the region is struggling to recover from a recession.
In the US, the Fed minutes released yesterday showed policy makers think the central bank should be ready to vary the pace of its $US85 billion in monthly bond purchases, fuelling concern stimulus will be curtailed.
In official economic news, US data showed jobless claims rose more than forecast, with applications for unemployment benefits rising by 20,000 last week to 362,000.
A separate report revealed Philadelphia-area manufacturing has shrunk unexpectedly.
The Dow Jones Industrial Average closed down 47 points to 13,881, the S&P 500 Index fell 0.6 per cent to 1,502, and the Nasdaq gave up 33 points, or just over 1 per cent, to 3,131.
Across the Atlantic, UK insurance firm Aviva recovered some of its losses from the previous session.
However, losses among mining stocks weighed on the broader market and, by the close, London’s FTSE 100 Index had fallen 104 points, or 1.6 per cent, to 6,291.
It is set to be a flat start on the Australian share market after yesterday’s 2.3 per cent slide, and in futures trading the Share Price Index 200 was down 6 points to 4,961.
The Australian dollar was also weak, and was worth 102.4 US cents around 9:00am (AEDT).
West Texas crude oil eased to $US92.85 a barrel, Tapis was also weaker at $US120.06.
However, spot gold was fighting back from recent weakness, trading at $US1,577 an ounce.Topics: business-economics-and-finance, markets, currency, futures, stockmarket, australia, united-kingdom, united-states First posted February 22, 2013 09:24:28