The Australian share market is likely to open slightly weaker this morning after comments from U.S. Federal Reserve Chairman Ben Bernanke ignited concern for the health of a recovery in the US economy.
A fall in oil and metals prices may also weigh on resource stocks today.
In the US overnight Wall St closed the session flat with falls in oil and gold prices and a stronger dollar impacting stocks. Speaking at the Economic Club of Washington Federal Reserve Chairman Ben Bernanke made comment that the unemployment rate in the US is likely to remain high for some time. He also indicated that the Federal Reserve will keep interest rates at historic lows near zero to support the recovery.
The Dow Jones Industrial Average gained 1 point to 10,390. The S&P500 Index is down 3 to 1,103 and the NASDAQ fell 5 points to 2,190.
European markets were lower. London’s FTSE down 12 points, Paris dropped 7 points and Frankfurt declined 33.
Asian markets were mixed: Hong Kong’s Hang Seng fell 173 points. Tokyo’s Nikkei gained 145 and the Shanghai Composite rose 15 points.
Back to the local market now and Australian stocks ended lower on Monday. The S&P/ASX 200 Index closed 26 points weaker at 4,677. Looking at the futures market the SPI200’s up a point.
Looking at currencies; the Aussie Dollar at 8.55AM is buying 91.3 US cents, 81.72 Yen, 61.59 Euro cents and 55.52 Pence Sterling.
In economic news today: The Australian Bureau of Agricultural and Research Economics December quarter crop report is out today, as well as the ABS balance of payments and international investment data for the September quarter, the NAB monthly business survey for November and the Dun and Bradstreet business expectations survey.
In company news about this morning: Shares in engineering and construction company Clough Ltd (ASX:CLO) rose 2.12 per cent to $0.96 yesterday. The company says Clough AMEC, a 50/50 joint venture between Clough and international engineering and project management company AMEC, has won a contract with Woodside Energy to provide offshore maintenance services for their Australian oil and gas assets. Clough AMEC has worked with Woodside Energy for the last five years and this new contract includes two one-year extension options. Clough AMEC will provide maintenance services for the supply of offshore core crew and routine maintenance works on Woodside Energy’s key offshore oil and gas production assets, predominantly located on the North West Shelf off Western Australia. Clough has posted profits in the last couple of years following three years of losses.
Shares in Global Construction Services Ltd (ASX:GCS) closed steady at $0.95 yesterday. The company has been awarded a $75 million contract with Brookfield Multiplex for the Western Australian Department of Health’s Fiona Stanly Hospital project in Perth. Under the terms of the contract the company will provide formwork and concrete installation for the project over a period of around 2 years, commencing in March 2010. The company says revenue will be booked in the next three financial years, fiscal 2010 to fiscal 2012, providing it with a platform to drive strong growth over the period. GCS Group’s profits have been increasing over the last three years.
Checking ex-dividends, and while there are no companies going ex-dividend today coming up tomorrow we have Marbletrend Group and on Thursday we have Metcash and Premium Investors.
Looking at metals: Gold lost $5.50 to US$1,164 an ounce for the February contract on Comex. For the March contract Silver dropped 16 cents to US$18.36 and copper is 3 cents lower at US$3.21.
And the price of oil is $1.67 lower at US$73.80 a barrel for January light crude in New York.
