The local share market may be in for a weaker or flat start this morning following a negative lead from Wall St overnight, with the miners likely to fall after copper slipped on concern for a softening in demand from China and the effects of further monetary tightening on the country.
US stocks closed out a choppy session lower overnight, as investors mulled over earnings news, President Barack Obama’s health care proposal and a buy-out deal for oil services company Smith International.
President Obama unveiled his outline for health care reform on Monday. The 10 year plan, costing close to $1 trillion is reportedly aimed at covering some 31 million Americans not insured without putting further pressure on the budget deficit.
And according to CNN Money a survey from the National Association for Business Economics shows that leading economists think that the recovery will remain on track.
Checking the figures the Dow Jones Industrial Average is down 19 points to 10,383 points. The S&P500 Index lost a point to 1,108 and the NASDAQ dropped 2 points to 2,242.
To other international markets, European stocks also fell. London’s FTSE declined 6 points, Paris slipped 13 and Frankfurt fell 34 points.
Asian stocks closed mixed on Monday with Hong Kong’s Hang Seng up 483 points, Tokyo’s Nikkei gained 277 and China’s Shanghai Composite closed 15 points lower.
The Australian share market closed higher on Monday. The S&P/ASX 200 Index added 82 points to 4,718 and on the futures market the SPI200’s down 2 points.
On to currencies: the Aussie Dollar at 8:50AM was buying 90.01 US cents, 58.15 Pence Sterling, 82.06 Yen and 66.22 Euro cents.
In economic news out today: ABS underemployed workers data for September 2009 is due out.
There are a number of Australian companies reporting today including: Aristocrat Leisure, GPT Group, and Oil Search are to release their annual results. Consolidated Media, Specialty Fashion Group and Southern Cross Media report first half results.
To company news around this morning: Mining giant Rio Tinto Ltd (ASX:RIO) shares gained 2.13% to $72.51 yesterday. The miner has opened a new mine at Robe Valley in the Pilbara of Western Australia. According to the Australian Financial Review the open cut mine is part of a joint venture between Rio, Mitsui, Nippon Steel and Sumitomo Metal Industries called the Robe River Iron Associates. The paper says Rio, who holds a 53% interest in the joint venture, is targeting production of 20 million tonnes a year ramping up to 25 million tonnes by the end of 2011. Rio Tinto posted net profit of $5.3 billion for 2008.
Oil and gas producer Roc Oil Company (ASX:ROC) shares rose 1.32% to $0.38 yesterday. The company has written down the value of its Basker-Manta-Gummy project in Bass Strait by US$98.8 million. Earlier this month Roc slashed its reserves estimate for the project by 80% following a review of its performance. Roc Oil is to report its annual results on Thursday. Roc Oil Company posted a loss of $401.83 million for the 2008 calendar year.
Taking a look at ex-dividends: Among those companies going ex-dividend today we have AMP with a 16 cent 50% franked dividend, Foster’s Group with a 12 cent fully franked dividend, Super Cheap Auto with an 8.5 cent fully franked dividend and Wesfarmers with a 55 cent fully franked dividend.
To commodities: Gold is down $9 to US$1,113.10 an ounce for the April contract on Comex. For the May contract, silver lost 18 cents to US$16.26 and copper declined 5 cents at US$3.33.
And finally the price of oil is up $0.39 cents to US$80.16 a barrel for March light crude in New York.
