Outlook: Aus shares set for sharp losses

Market Reports


The Federal Reserve decision to leave interest rates on hold last week spooked US investors with sharp losses across US markets on Friday.
 
High volumes of shares changed hands on the New York Stock Exchange ahead of the weekend due to the expiration of various stock-index futures known as quadruple witching. 
 
Meanwhile European stocks were also down and the SPI is pointing to a deeply negative opening for the local market. 
 
Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 1.7 per cent to close at 16,385, the S&P 500 lost 1.6 per cent to close at 1,958 and the NASDAQ dipped 1.4 per cent to close at 4,827.
 
European markets were also a sea of red: London’s FTSE shed 1.3 per cent, Paris lost 2.6 per cent and Frankfurt sagged 3.1 per cent.
 
Asian markets closed mixed: Tokyo’s Nikkei slipped nearly 2 per cent, Hong Kong’s Hang Seng advanced 0.3 per cent, and China’s Shanghai Composite added 0.4 per cent.
 
The Australian share market closed higher on Friday: The S&P/ASX 200 Index ended 24 points up at 5,171 to be 99 points up on the week. On the futures market the SPI is 76 points down. 
 
Currencies

The Australian Dollar at 7:20AM was buying 71.90 US cents, 46.33 Pence Sterling, 86.36 Yen and 63.72 Euro cents.
 

 
Company news

Energy World Corporation Limited (ASX:EWC) say they have completed a financing deal worth US$150 million for their LNG Power plant in the Philippines. A consortium of banks led by the Development Bank of the Philippines has backed the loan which was signed in Manila last week. Shares in Energy World last traded 2.33 per cent lower at $0.21. 
 
Atherton Resources Limited (ASX:ATE) says it has received an on-market unconditional takeover offer from a private equity group. Auctus Chillagoe is backed by Denham Capital and is offering 20 cents cash per share for Atherton with the offer open till close of trade on November 2.  Shares in Atherton Resources last traded 7.41 per cent lower at $0.125. 
 

Ex-dividends

Two companies are trading ex-dividend today. MGM Wireless Limited (ASX:MWR) will pay 1.3 cents with no franking while Seven Group Holdings (ASX:SVW) will pay 20 cents per share fully-franked.
 

Commodities

Gold has risen $20.80 to US$1,138 an ounce for the December contract on Comex. Silver has added 17 cents to $15.15 for December. Copper has slipped 7 cents to $2.39 a pound. Oil has shed $2.18 to US$45.02 a barrel for October light crude in New York.

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