The Australian share market is expected to open significantly lower after Wall Street sank on Friday and heavy losses were also seen in commodity prices.
The Australian market finished stronger on Friday with the S&P/ASX 200 Index added 69 points at 4,643. Looking at the futures market the SPI200’s down 118 points.
Checking currencies at 8:30AM the Aussie Dollar is buying 89.65 US cents, 80.39 Yen, 60.92 Euro cents and 54.62 Pence Sterling. In economic news, the AIG/PwC Australian Performance of Manufacturing Index for October will be released.
The TD Securities-Melbourne Institute Inflation Gauge for October and the Australian Bureau of Statistics house price index data for the September quarter also are due.
The Reserve Bank of Australia releases its index of commodity prices for September.
In much anticipated company news, department store Myer will list on the Australian Securities Exchange today.
To what’s making company news this morning: ANZ (ASX:ANZ) Banking Group shares closed higher on Friday up 0.92% to $23.06. This morning’s Australian Financial Review is reporting that ANZ Chief Executive Officer Mike Smith is confident it can generate about one-quarter of profit from the Asia-Pacific region by 2012. Smith has reportedly flagged plans to consider doubling the bank's size through a merger with an offshore group, although that deal is expected to be at least five years away. ANZ’s best net profit was in 2007 but since then results have been falling each year.
Kangaroo Resources (ASX:KRL) shares last traded at 30.5 cents. The Australian Financial Review is reporting that Kangaroo Resources is planning to raise about $25 million to acquire four Indonesian coal projects in a deal that could see the company produce more than 10 million tonnes of coal within three years. The money is expected to be raised through Stonebridge Securities at a price of 23 cents to 25 cents a share. Kangaroo Resources has recorded three consecutive years of net losses.
To ex-dividends and going today are Hills Industries with a 2 cents fully franked dividend and Lihir Gold with around 1.52 cent, unfranked dividend.
To international markets: Wall Street sank on Friday - The Dow plunged 250 points, the S&P500 Index fell 30 points and the NASDAQ dropped 52 points.
European markets were lower. London’s FTSE fell 93 points, Paris lost 106 points and Frankfurt dropped 172 points.
Asian markets finished higher: Hong Kong’s Hang Seng advanced 488. Tokyo’s Nikkei gained 144 and Shanghai Composite rose 35.
Looking at metals: Gold is down $6.70 to US$1040.40 an ounce for the December contract on Comex. Silver lost 40 cents to US$16.26 and copper fell 7 cents to US$2.96.
And the price of oil is $2.87 lower to US$77 a barrel for December light crude in New York.
