The Australian share market is expected to take a tumble again this morning following a big fall on Wall Street on Friday as investors brace themselves for another rocky week.
US stocks fell on fears that Europe’s mounting debt crisis could spark another global recession and lingering questions about what triggered the Dow index to plunge nearly 1,000 points in the previous trading session.
Stocks gained some support from US economic news that the economy added jobs at the fastest pace in four years in April. The Labor Department said 290,000 jobs were added in April. A 187,000 job increase had been expected.
To the figures, and the Dow Jones Industrial Average finished 140 points lower at 10,380. The S&P500 Index fell 17 points to 1,111 and the NASDAQ is 54 points weaker at 2,266.
Further abroad, European stock markets tumbled across the board with London’s FTSE down 138 after Britain’s elections ended in a hung parliament, Paris lost 164 points and Frankfurt dropped 193 points.
To our region now and Asian stocks were weaker with Hong Kong’s Hang Seng down 213 points, Tokyo fell 331 and China’s Shanghai Composite lost 51 points.
The Aussie share market finished deeper in the red on Friday, after a horror week that wiped over $90 billion from its value. The S&P/ASX 200 Index closed 93 points weaker at 4,481 and on the futures market the SPI200 is down 49 points. On to currencies: the Aussie Dollar at 8.40AM was buying 89.61 US cents, 60.6 Pence Sterling, 82.64 Yen and 69.48 Euro cents.
In economic news, ANZ is due to publish its job advertisements series for April and National Australia Bank is set to release its monthly business confidence survey.
To company news around this morning: Shares in Woolworths Ltd (ASX:WOW) closed 0.81% lower on Friday to $26.94. The supermarket chain’s CEO Michael Luscombe says the company will retain its long term strategy, despite poor sales growth expectations. Mr Luscombe has told the Australian Financial Review the retailer will not increase prices to counter the lower sales growth and will continue with plans for new stores and the launch of a new hardware chain. The company announced an annual sales guidance downgrade last week and is now facing its lowest annual sales growth in at least six years. Woolworths booked a profit of over $1.835 billion for the 2009 financial year.
Pacific Brands Ltd (ASX:PBG) shares closed weaker on Friday, down 2.78% to $1.05. The clothing manufacturer has appointed former Telstra executive Holly Kramer as general managing director of its homewares division. The Australian Financial Review reports that the move will put Ms Kramer in line as a potential successor to long-time CEO Sue Morphet. She will be responsible for the company’s hard goods group along with bedroom accessory brands such as Sheridan and Sleepmaker. Pacific Brands’ first half results showed its homewares division is struggling, with sales down 10%. Pacific Brands posted a loss of $234.48 million in fiscal 2009.
There is only one company going ex-dividend today and that’s Macquarie Group, paying a $1 unfranked dividend. On Wednesday is E & A with a fully franked 1.5 cent dividend.
To commodities, and the price of gold rose $13.10 to US$1,210 an ounce for the May contract on Comex. Silver is up 94 cents at US$18.43 and copper is 3 cents higher at US$3.13.
And finally oil dropped $2 to US$75.11 a barrel for June light crude in New York.
