The Australian share market looks to be in for a flat start this morning following mixed offshore leads. US stocks managed to close higher, oil prices rose slightly, however European and Asian markets were lower on Thursday with precious and base metals also weaker.
A late rally on Wall St helped to push US stocks in the black on Thursday thanks to strong company earnings from Starbucks which helped to outweigh new concerns for Greece’s financial situation and weaker commodity prices.
Also in focus was President Barack Obama’s speech on financial reform at the Cooper Union in New York.
The speech comes as Congress debated a financial reform package which Democrats believe will enable the US to avoid another financial crisis.
In economic news out of the US, the National Association of Realtors reports that existing home sales rose to an annual unit rate of 5.35 million in March from a unit rate of 5.01 million in February. Economists expected a rise to 5.29 million units.
The Producer Price Index, a measure of whole sale inventories, lifted 0.7% in March after a 0.6% fall in February, Economists thought it would rise 0.5%.
And the number of Americans filing for new claims of unemployment fell to 456,000 last week from 480,000 the week before. Economists forecast a fall to 450,000.
The Dow Jones Industrial Average finished 9 points higher at 11,134. The S&P500 Index is up 3 points at 1,209 and the NASDAQ closed 14 points higher 2,519.
European stock markets closed lower. London’s FTSE lost 58 points, Paris dropped 53 points and Frankfurt decreased 62 points.
Asian stocks were weaker on Thursday. Hong Kong’s Hang Seng declined 56 points, Tokyo’s Nikkei is fell 141 points and China’s Shanghai Composite is 34 points lower.
Turning to the local market now, and The S&P/ASX 200 Index finished 47 points lower at 4,907, and on the futures market the SPI200 is up 4 points. On to currencies: the Aussie Dollar at 8:40AM was buying 92.59 US cents, 60.23 Pence Sterling, 86.49 Yen and 69.77 Euro cents.
To company news around this morning: Shares in mining giant BHP Billiton Ltd (ASX:BHP) dropped 1.22% to $42.21 yesterday. The investigation into the miner’s alleged corrupt dealings with government officials in Cambodia has widened after reports that British regulators are now involved. BHP has apparently uncovered emails between managers in Cambodia, and potentially other countries, and government officials relating to tenements the company has now left. It is being said that BHP paid ‘tea money’ to government officials to obtain the rights to a bauxite deposit in Cambodia. The investigation has CEO Marius Kloppers worried, a Fairfax reports says Mr Kloppers has sent an email to staff expressing great concern at the alleged ‘tea money’ scandal, reminding his employees that working with integrity is critical to BHP’s success. BHP earned $7.2 billion in the 2009 financial year.
Shares in the Seven Network Ltd (ASX:SEV) gained 0.26% to $7.65 on Thursday. Kerry Stokes’ proposed merger of Seven and industrial equipment business WesTrac is to return to the Federal Court today in what may be the last hurdle for the $3 billion merger. A Fairfax report says Justice Peter Jacobson will be asked today to approve the scheme of arrangements for the union. If approved Stokes will emerge with a 68% interest in the merged entity, which is to be called Seven Group Holdings. On Tuesday Seven shareholders gave the merger with WesTrac the green light with 88.7% in favour of the deal. The Seven Network reported a profit for the last financial year.
Taking a look now at ex-dividends: And going today we have Brickworks with a 13 cent fully franked dividend, OM Holdings with a 2 cent unfranked dividend, and Prime Infrastructure Group with a 7.5 cent unfranked dividend.
To commodities: The price of gold dropped $5.90 to US$1,142.30 an ounce for the June contract on Comex. Silver fell 7 cents to US$18.01 and copper is 5 cents lower at US$3.48.
And the price of oil rose $0.02 to US$83.70 a barrel for June light crude in New York.
