Finance news you need to know today

HOME prices across Australia’s capital cities have risen an average of 10.2 per cent in the year to March 2017, driven by Sydney’s strong property market.

THE Australian market looks set to open lower, following the trend of international markets with energy shares hit by a sharp fall in oil prices, concern over Amazon.com’s plans and investor anxiety over US interest rates. At 0700 AEST on Wednesday, the share price futures index was down 29 points, or 0.51 per cent, at 5,667.

Meanwhile, the Australian dollar is a quarter of a US cent down on the greenback which lifted against most major currencies overnight. The local currency was trading at 75.84 US cents at 0700 AEST on Wednesday, from 76.10 on Tuesday.

WORLD FINANCE UPDATE:

WASHINGTON — The US deficit in the broadest measure of trade rose to the highest level in a year during the first quarter.

BRUSSELS — EU Brexit negotiator Michel Barnier has assured Britons he expects to compromise at times over the coming months as London and Brussels try to settle terms for British withdrawal from the European Union.

LONDON — The British government will rule on whether Rupert Murdoch’s proposed takeover of European pay-TV group Sky needs a thorough investigation by June 29, the Culture and Media Secretary says.

MILAN — Carla Fendi, one of the five Italian sisters who transformed their parents’ small leather workshop into an international luxury fashion powerhouse, has died at the age of 79.

TUESDAY HIGHLIGHTS:

TABCORP — Tabcorp says its merger with gaming rival Tatts Group will create $130 million in additional earnings — in part from job cuts — after securing regulatory approval for the $11 billion deal on Tuesday.

HOME PRICES — Home prices across Australia’s capital cities have risen an average of 10.2 per cent in the year to March 2017, driven by Sydney’s strong property market.

MORTGAGES — Interest rate rises are partly to blame for more Aussies falling behind on their mortgage repayments, according to a leading ratings agency.

RBA — A continuing slide in the number of hours people are working and ongoing worries about household debt convinced Australia’s central bank that the official interest rate should remain unchanged at its last meeting.

MOODYS — Shares in Australia’s big four banks have fallen after Moody’s cut their long-term credit ratings due to risks associated with the local housing market.

WESTPAC — Westpac is raising variable rates on its interest-only mortgages by another 0.34 percentage points as it tries to slow down riskier lending to stay within regulatory limits.

NSW ECONOMY — Continuing strength in Sydney’s property market and increased dividends from state corporations will help NSW deliver a higher-than expected surplus in the coming year.

NSW RISKS — The NSW government is forecasting a surplus of $2.7 billion for the 2017/18 financial year in Tuesday’s state budget, on the back of continuing strength in Sydney’s property prices.

OROTON — Struggling luxury handbag retailer Oroton has flagged it could be up for sale as it explores options to overcome falling sales and a precarious debt position.

CAPGEMINI — The domination of Australian banking by the big four banks is nearing its end as agile, tech-focused competitors chip away at their markets, a new report on the evolution of global banking suggests.

APA — APA Group looks set to build a new gas pipeline connecting Queensland’s Bowen Basin to NSW, Victoria and South Australia.

SLATER GORDON — Slater and Gordon says it will fight a class action brought against it by one of its shareholders for allegedly making false financial statements.