The Australian share market looks like it may be in for a flat start this morning after Wall St closed slightly lower overnight following the release of GDP data that showed the US economy grew less than expected in the third quarter overshadowing an improved outlook from the US Federal Reserve. Lower commodities prices may also hurt resource stocks today.
Australian stocks closed lower on Tuesday. The S&P/ASX 200 Index closed 32 points lower at 4,685. Looking at the futures market the SPI200 is steady.
At 8:50AM the Aussie Dollar is buying 91.96 US cents, 81.45 Yen, 61. 47 Euro cents and 55.47 Pence Sterling.
In economics news out today: The Department of Education and Workplace Relations job vacancies report is due for release as well as the ABS construction work done for the September quarter.
In company news about this morning: Shares in minerals explorer Polaris Metals NL (ASX:POL) gained 5.22 per cent to $0.805 yesterday. The company has recommended shareholders vote in favour of the improved Mineral Resources Ltd (ASX:MIN) offer announced yesterday. Under the improved offer from Mineral Resources, Polaris shareholders will receive one Mineral Resources share and $1 cash for every 10 Polaris shares held. The company says it finds this sweetened offer a better deal than the improved Lion-Asia offer of 74 cents a share. The improved Mineral Resources offer is now unconditional and Mineral Resources has also agreed to process payment of consideration within 5 business days. Polaris Metals has posted net losses in the last five years.
Shares in diversified industrial company Campbell Brothers Ltd (ASX:CPB) fell 0.03 per cent to $26.99 yesterday. The Brisbane based company has reported net profit after tax of $38.26 million for the six months to September 2009, in line with previous guidance. The result was however, down 33% on the same period last year and was generated from revenue of $400.91 million, down 12% on the September half of 2008. Chairman Geoff McGrath says the result represents a sound financial performance in an uncertain economic environment during the period. Mr McGrath says recent data indicates there is stability and, in some regions, growth returning to the markets serviced by the company. Campbell Brothers reported net profit of $106.2 million for 2009.
Checking ex-dividends, and while there are no companies going ex-dividend today, coming up tomorrow we have Katana Capital and TFS Corp.
Turning now to overseas markets. US Stocks closed lower on Tuesday - The Dow Jones Industrial Average fell 17 points. The S&P500 Index is down just over half a point and the NASDAQ dropped 7 points.
European markets were also lower. London’s FTSE is down 32 points, Paris fell 29 points and Frankfurt lost 32.
Asian markets were weaker: Hong Kong’s Hang Seng is down 348 points. Tokyo’s Nikkei dropped 96 and the Shanghai Composite slipped 115 points.
Looking at metals: Gold advanced $1.90 to US$1,166.60 an ounce for the December contract on Comex. Silver down 16 cents to US$18.49 and for the March contract, copper is down 2 cents at US$3.14.
And the price of oil is down $1.54 to US$76.02 a barrel for January light crude in New York.
