The Australian share market looks likely to open lower this morning following a weak lead from Wall St at the end of last week and a fall in commodity prices.
US stocks took a tumble on Friday, investors cheered some better than expected profit results from JP Morgan and Intel but sold shares in the two companies anyway.
Also influencing the market were a number of mixed economic reports. The University of Michigan's consumer sentiment index rose to a read of 72.8 in January from 72.5 in December. Economists expected the index to rise to around 74.
In a key measure of inflation the Consumer Price index rose 0.1% in December. Expectations were for a rise of 0.2%. CPI rose 0.4% in the previous month.
And the Empire Manufacturing index, a read on manufacturing in the New York area, jumped to 15.9 in December, up from 4.5 in November. Economists predicted a rise to 12.
The Dow Jones Industrial Average is down 101 points to 10,610. The S&P500 Index is down 12 to 1,136 and the NASDAQ is down 29 points at 2,288.European markets were lower. London’s FTSE is down 43 points and Paris is down 61, and Frankfurt is down 113 points.
Asian markets were mixed: Hong Kong’s Hang Seng lost 63 points, Tokyo’s Nikkei added 74 points and China’s Shanghai Composite advanced 9 points.
The Australian share market ended higher on Friday. The S&P/ASX 200 Index finished 2 points higher at 4,900 and on the futures market the SPI200’s down 29.
Looking at currencies; the Aussie Dollar at 9:15AM is buying 92.18 US cents, 83.78 Yen, 64.19 Euro cents and 56.63 Pence Sterling.
In economic news: TD Securities Melbourne Institute inflation gauge for December is due out today.
In company news about this morning: Shares in gold producer Lihir Gold (ASX:LGL) are down 1.5% to $3.29 last Friday. Arthur Hood has resigned from his position of CEO of Lihir Gold today. Hood steps down immediately, and will be replaced by Chief Financial Officer, Phil Baker who has been appointed as interim CEO while a global search for a new chief executive takes place. Hood says that after more than four successful years as CEO, he has achieved his primary goal of overseeing the transformation of LGL from a single mine operation to a mulit-mine company producing in excess of one million ounces of gold per year. Lihir Gold reported a profit of $157 million for calender 2008.
Shares in oil and gas company Otto Energy (ASX:OEL) are up 21.33% to 9.1cents last Friday. The company has reached an agreement with BHP Billiton (ASX:BHP) over Otto’s SC55 permit in the Palawan Basin in the Philippines. The deal could see the resources giant spend up to $200million on one of the projects. BHP will initially fund between 1000 and 2000 kilometres of 3D seismic surveys over the permit. Otto Energy reported a loss of $57.35 million dollars for fiscal 2009.
To the week ahead in companies going ex dividend: Mirrabooka Investments is going on Thursday and Contango Microcap is going on Friday.
To metals: Gold declined 12cents lower to US$1,131 an ounce for the February contract on Comex. For the March contract Silver declined 22 cents to US$18.44 and copper is down 2 cents at US$3.37.
And the price of oil is down $1.44 at US$78.00 a barrel for February light crude in New York.
