The local share market is expected to open in the red after U.S. markets posted mild losses overnight. Metal prices improved overnight which could support local miners.
Metcash is holding its annual general meeting today.
The local share market closed lower on Wednesday. The S&P/ASX 200 Index is down 76 points to 4,438 and on the futures market the SPI200’s down 17 points.
Checking currencies at 8:45am the Aussie Dollar is buying 83.43 US cents, 76.92 Yen, 58.47 Euro cents and 51.27 Pence Stirling.
In economic news: The Australian Bureau of Statistics will release the international trade data for July and Australian Industry Group / Commonwealth Bank will release the Performance of Services index data for August.
In company about this morning: Suncorp Metway shares closed 1.29% lower at $7.65 yesterday. Last night a report from Credit Suisse said that Australia's "big four" banks could buy Suncorp-Metway’s underperforming banking business. The report said that the banks are cashed up and could be ready to buy the regional lender and general insurer’s bank business because the risks are now quantifiable. The report went on to suggest the banks will give back $16 billion of excess capital to shareholders during this financial year. Suncorp Metway net profits have been declining for the past 2 financial years after a strong 2007 result.
Lynas Corporation shares closed 1.61% lower at $0.61 in the last session. Late yesterday Lynas said the Australian Foreign Investment Review Board has not yet made a decision about the proposed take over of the company by Chinese state-owned China Non-ferrous Metal Mining. Lynas had about $8.6 million cash at the end of August, but cash was expected to run out at the end of October. Lynas reported a significant net loss in 2008 compared to the losses from previous years.
Checking ex-dividends, and among those going today we have Fleetwood Corporation with a 36 cent fully franked distribution, Kingsgate Consolidated is paying a 15 cent 100% cent franked dividend, Straits Resources has a 30 cent unfranked dividend and West Australian Newspapers is paying 10 cents fully franked.
To the international scoreboard: U.S. stocks posted mild losses overnight. The Dow Jones industrial average fell 30. The S&P500 Index lost 3 points and the NASDAQ fell just 2 points.
European markets were also mildly weaker: London’s FTSE fell 2 points, Paris fell 10 points and Frankfurt declined 7 points.
Asian markets were lower: Hong Kong’s Hang Seng sank 350 points. Tokyo’s Nikkei lost 250 points and China’s SSE Composite was closed.
Looking at Metals: Gold up $22 to US$978.50 an ounce for the December contract on Comex. Silver is up 31 cents to US$15.37 and copper is up 1 cent to US$2.83.
And finally, oil is steady at US$68.05 a barrel for October light crude in New York.
