The Australian share market has received a negative lead from Wall St overnight and is likely to open lower this morning. A fall in precious and base metals may also put the pressure on the miners today.
Overnight US stocks took a tumble after the fourth quarter reporting period got off to a disappointing start with Alcoa’s los and a warning from Chevron, concerns that banks could face fees from the Government as it tries to regain some of the bailout funds issued also caused Wall St to fall.
According to CNN Money US President Barack Obama is considering a levy on financial services firms in an effort to try and recoup some of the bailout losses as part of the fiscal 2011 budget to be released in February.
And in economic news, the trade deficit in the US widened to $36.4 billion in November, wider than the$33.2 billion in October. Economists had only expected an increase to $34.5 billion.
To the figures, the Dow Jones Industrial Average fell 37 points to 10,627. The S&P500 Index lost 11 at 1,136 and the NASDAQ dropped 30 points at 2,282.
To other markets - European markets were also lower. London’s FTSE down 39 points and Paris declined 43 points, and Frankfurt fell 98 points.
Asian markets were mixed: Hong Kong’s Hang Seng slipped 85 points, Tokyo’s Nikkei added 81 points and China’s Shanghai Composite increased 61 points.
Back to the local market and Australian stocks closed lower on Tuesday. The S&P/ASX 200 Index finished 51 points lower at 4,900 and on the futures market the SPI200’s down 50.
Looking at currencies; the Aussie Dollar at 8:15AM is buying 92.06 US cents, 83.77Yen, 63.52 Euro cents and 56.92 Pence Sterling.
In economic news out today: ABS lending finance data for November is to be released.
In company news about this morning: Shares in construction and engineering business Leighton Holdings Ltd (ASX:LEI) fell 1.84 per cent to $40.51 yesterday. The company says its subsidiary John Holland has secured a 30 month mine operations contract worth around $260 million. The contract is for works at Isaac Plains Coal Mine in Central Queensland and has been awarded by the Isaac Plains Coal Management who manages a 50/50 joint venture between Vale and Aquila Resources. Leighton Holdings profit for the 2009 financial year was $440.04 million. Shares in diversified resources company Straits Resources Ltd (ASX:SRL) declined 1.13 per cent to $1.75 yesterday. The company says its Singapore listed subsidiary, Straits Asia Resources, has sold its marine engineering business for US$4 million. The company says it sold Straits Asia Engineering to a consortium that included the management team of the engineering unit. Straits Asia says the sale follows a review of the unit and a decision that it is not core to the company’s mining business. Straits Resources posted a loss of $42.11 million for fiscal 2009.
Looking at companies going ex dividend: While there are no companies going ex-dividend today coming up next week we have Mirrabooka Investments and Contango Microcap.
To metals: Gold dropped $22.10 to US$1,129.30 an ounce for the February contract on Comex. For the March contract Silver lost 34 cents to US$18.36 and copper is down 9 cents at US$3.35.
And the price of oil is down $1.73 to US$80.79 a barrel for February light crude in New York.
