The Australian share market looks set to open lower after U.S. markets slumped overnight as Greece received another credit downgrade and the U.S. dollar rose to its highest level in 3 months.
On Wall Street, banks were sold off and a weaker than expected jobs report also pressured stocks.
The Labor Department reported that jobless claims rose unexpectedly by 7,000 last week to 480,000 compared to expectations for a decline to 465,000 new claims.
The November index of leading economic indicators, from the Conference Board, rose 0.9% -- beating expectations of a 0.7% jump.
The Dow Jones Industrial Average lost 133 points to 10,308. The S&P500 Index is down 13 to 1,096 and the NASDAQ closed 27 points weaker at 2,180.
European markets were lower. London’s FTSE lost 103 points, Paris declined 45 points and Frankfurt fell 59.
Asian markets were also lower: Hong Kong’s Hang Seng lost 264 points. Tokyo’s Nikkei fell 14 and the Shanghai Composite declined 76 points.
Back to the local market now and Australian stocks ended mildly higher on Thursday. The S&P/ASX 200 Index finished 8 points firmer at 4,670. Looking at the futures market the SPI200’s down 32.
Looking at currencies; the Aussie Dollar at 8.45AM is buying 88.7 US cents, 79.82 Yen, 61.87 Euro cents and 54.91 Pence Sterling.
In company news about this morning: Shares in Computershare (ASX:CPU) gained 0.09% yesterday to $10.99. The world's top share registry business looks set to increase its exposure to the Russian market. Russia’s Federal Anti-Monopoly Service said yesterday that Computershare has applied for permission to increase its stake in Russia's Registrar NIKoil to 100 percent from 40 percent. Computershare bought the 40 percent stake in October 2006 as part of its strategy to build its Russian business. Russia’s competition watchdog will take two months to review the application. Computershare posted a 2009 net profit of $315.18 million for the year ended June 30.
Nufarm shares closed 0.28% lower at $10.64 yesterday. The Australian Financial Review in its Street Talk column is this morning reporting that Nufarm (ASX:NUF) could accept a lower takeover offer from China’s Sinochem than the original bid of $2.8 billion or $13 a share. The unsubstantiated report says the lower bid could result from Nufarm having a weakened bargaining position because of cuts to earnings this year and “challenging” trading conditions. Sinochem lengthened its due diligence process and moved the deadline to formally make an offer for Nufarm from December 2 to December 23. Nufarm reported a 2009 net profit of $79.88 million for the year ended July 30.
Taking a look at ex-dividends now, and there are no companies going ex dividend today but coming up next week is Bunnings Warehouse Property Trust, Challenger Diversified Property Trust and Macquarie Airports.
Looking at metals: Gold lost $29 to US$1,107.20 an ounce for the February contract on Comex. For the March contract Silver fell 49 cents to US$17.20 and copper is down 8 cents at US$3.13.
And the price of oil is 1 cent weaker at US$72.65 a barrel for January light crude in New York.
