Australian stocks look likely to open lower this morning following a third straight session of losses on Wall St at the end of last week.
US stocks took a tumble at the end of last week on concerns for President Obama’s bank plan and fears that China’s move to tighten bank lending will result in a broader cut back in lending.
China has asked banks to slow down lending this year in a move aimed at trying to get ahead of inflation.
According to CNN Money the US Government plans to restrict the ability of commercial banks to make high-risk trades and stop them from owning or investing in hedge funds.
There have also been questions raised as to whether Federal Reserve Chairman Ben Bernanke will stay in his position for a second term with more Democratic senators saying they will vote against giving him a second term.
And in economic news out of the US, a report showed that December jobless rates rose in 43 states and the District of Columbia compared to the month before.
Checking the figures, the Dow Jones Industrial Average fell 217 points to 10,173. The S&P500 Index lost 25 to 1,092 and the NASDAQ is down 60 points at 2,205.
To other international markets, Europe was lower. London’s FTSE dropped 32 points Paris is down 41, and Frankfurt fell 52 points.
Asian markets were also weaker with Hong Kong’s Hang Seng down 136 points, Tokyo’s Nikkei declined 278 and China’s Shanghai Composite is down 30 points.
On the local share market shares fell on Friday. The S&P/ASX 200 Index finished 77 points lower at 4,751 and on the futures market the SPI200’s down 87.
On to currencies: the Aussie Dollar at 8:50AM was buying 90.35 US cents, 81.63 Yen, 63.8 Euro cents and 56.07 Pence Sterling.
In economic news out today: the ABS releases producer price indices for December.
In company news about this morning: Shares in petroleum company WestSide Corporation Ltd (ASX:WCL) closed steady $0.50 last Friday. The company has announced that its MSM #3 well in the Mount Saint Martin prospect has intersected additional coal seams that could significantly increase the company’s coal seam gas resource in the area. Chairman Angus Knoll says the existence of the new seams could result in a significantly higher gas resource than previously estimated at Mount Saint Martin. Mr knoll says the company plans to drill several wells at Mount Saint Martin this year with an aim to certify initial gas reserves to complement the reserves booked last year at the nearby Tilbrook pilot. WestSide reported a loss for the 2009 financial year.
Shares in oil and gas explorer Drillsearch Energy Ltd (ASX:DLS) declined 1.2% to $0.082 last Friday. The company has surrendered a Petroleum Exploration Permit to the Government of Western Australia Department of mines and Petroleum. As part of the company’s strategic review last October, it identified the permit as being non-core to the future strategic direction of the company. Managing Director Brad Lingo says when faced with a potential forward work commitment in the permit of over $40 million, 3D seismic and two offshore wells, the company could simply not justify these expenditures in light of the high success rates it is having in the Cooper Basin with much more manageable expenditures. Drillsearch posted a loss for the year to June 30, 2009.
Taking a look at ex-dividends: and going today we have Ozgrowth with a 0.3 cent fully franked dividend, and Westoz Investment Company with a 2.5 cent fully franked dividend.
To commodities: Gold is down $11.20 to US$1,092 an ounce for the February contract on Comex. For the March contract silver lost 58 cents to US$16.94 and copper is up 5 cents at US$3.35.
The price of oil dropped $1.33 to US$74.75 a barrel for March light crude in New York.
