We’re looking at a flat start for the Australian share market this morning after gains on Wall Street turned mostly negative towards the close.
Most US stocks fell as a disappointing Treasury auction and indecision among European leaders about how to rescue Greece from its debt problems, helped to erase a rally in the final half hour of overnight trade.
In the latest US economic news, new claims for unemployment benefits fell to 442,000 last week, that’s the lowest level in six weeks. Claims were at 456,000 the week before and many economists were surprised at how far the number of claims fell.
Meanwhile continuing claims, which measures those getting benefits for a week or more, fell to 4,648,000 from 4,725,500 in the previous week.
To the figures now and the Dow Jones Industrial Average added 5 points to 10,841. The S&P500 Index lost 2 points at 1,166 and the NASDAQ is down 1 point at 2,397.
European stock markets gained on the news of a possible debt rescue package for Greece. London’s FTSE added 50 points, Paris rose 51 points and Frankfurt gained 94 points.
Asian stocks are mixed, Hong Kong’s Hang Seng is down 230 points, Tokyo’s Nikkei gained 14 points and China’s Shanghai Composite lost 38 points.
The Australian share market closed yesterday’s sessions slightly lower after influenced by that negative debt news overseas. The S&P/ASX 200 Index fell 6 points stronger at 4,885 and on the futures market the SPI200 is down 2 points. On to currencies: the Aussie Dollar at 8:30AM was buying 90.72 US cents, 61.27 Pence Sterling, 84.11 Yen and 68.34 Euro cents.
To company news around this morning: Rio Tinto (ASX:RIO) shares finished 1.84% higher to $78.62 on Thursday. Rio Tinto and BHP Billiton’s planned iron ore production joint venture in the Pilbara, in Western Australia has hit another roadblock. Last night the Australian Competition and Consumer Commission said the proposed joint venture ''may raise competition concerns in relation to the global shipping and Australian markets for the supply of iron ore". The competition watchdog wants more information to determine whether the deal results in a reduction of competition – which would be the trigger for the rejection of the joint venture under Australian competition law. Up until now, both miners had probably thought the only obstacle to the joint venture would be the European Union's competition regulators, who have to answer the concerns of Europe's steel producers. Rio Tinto’s 2009 net profit of $5.4 billion was an improved result on the year before.
Brambles (ASX:BXB) shares were 2.02% lower at $7.28 at yesterday’s close. The Pallet supplier and information management company plans to repay some of its debt after selling US$750 million worth of guaranteed senior notes in the US bond market. It is the first public bond issue for Brambles, which has previously raised debt in the bank loan and US private debt markets. Brambles will use the funding to repay borrowings under its existing revolving bank credit facilities. The two issues include a $US500 million guaranteed senior note and a $US250 million guaranteed senior note, offered at a fixed-rate, which will be issued by Brambles USA. The $US500 million bond has a coupon of 5.35% for a term of 10 years. The $US250 million bond has a coupon of 3.95% for five years. Bramble’s 2009 net profit was $557 million – that result lower than the two years before.
There are eight companies going ex-dividend today, so I’ll just mention a few on each page, we have Centennial Coal 4 cent 50% franked and Consolidated Media Holdings 10.5 cent fully franked dividend and The Seven Network 17 cent fully franked, and changing graphics and also going is David Jones, 12 cent fully franked.
To commodities: Gold rose $4.10 to US$1,092.70 an ounce for the May contract on Comex. Silver gained 10 cents to US$16.73 and copper rose 3.5 cents to US$3.37
And oil slipped as the dollar rose against the major currencies, the price of oil fell 8 cents to US$80.53 a barrel for May light crude in New York.
