Returning from the Queen’s birthday long weekend, the Australian share market looks like it may be in for a flat start this morning following mixed leads from offshore markets overnight.
European and Asian stock markets managed to close higher on Monday, however US stocks gave up gains with the Dow Jones and S&P500 closing in the red after Greece’s debt rating was downgraded by ratings agency Moody’s which brought Europe’s debt woes to the forefront again.
US stocks gained earlier in the session on data showing stronger than expected industrial output in Europe for April.
No major economic reports were released on Monday, but reports on housing, wholesale and consumer inflation, and jobless claims are due out later in the week.
To the figures and the Dow Jones Industrial Average finished 20 points weaker at 10,191. The S&P 500 Index is down 2 points at 1,090 and the NASDAQ closed flat at 2,244.
European stocks were higher; London’s FTSE rose 38 points, Paris gained 71 and Frankfurt is up 77.
Asian markets were also higher on Monday. Hong Kong’s Hang Seng rose 180 points, Tokyo’s Nikkei gained 175 and China’s Shanghai Composite added 7.
The Australian share market closed higher last Friday. The S&P/ASX 200 Index closed 70 points higher at 4,506 and on the futures market the SPI200’s up 5 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 85.8 US cents, 58.24 Pence Sterling, 78.64 Yen and 70.26 Euro cents.
In local economic news coming out today: The RBA is to release the minutes of its June 1 monetary policy meeting, and credit/debit card data for April as well. ABS lending finance data for April is also due out today.
In company news around this morning: Shares in global miner BHP Billiton Ltd (ASX:BHP) gained 2.55% to $38.58 last Friday. According to a Reuters report, the miner has signed a $3 billion mineral development agreement with Liberia to develop an iron ore project in West Africa. Reuters says leases under the deal are close to the 250 kilometre long rail corridor that runs the Guinean border to the Liberian coast. The deal follows that of other iron ore deals inked by major miners including Brazil’s Vale, China Union and ArcelorMittal. Liberia in West Africa, although recovering from a civil war that ended in 2003, is considered one of the last area’s for undeveloped mineral deposits in the world. BHP Billiton reported net profit after tax of $7.24 billion for the 12 months to June 2009.
Shares in Australia and New Zealand Banking Group Ltd (ASX:ANZ) rose 1.86% to $23.04 last Friday. ANZ’s bid for a $1.4 billion stake in Indonesia’s Bank Panin is facing increasing competition and reports that the stake may not even be up for sale. A Fairfax report says the stake has garnered bids from European and US banks all looking to expand their presence in Asia. However, a report in The Australian this morning says the Gunawan family who own the 46% stake ANZ is vying for, may not be ready to sell their interest in Indonesia’s Bank Panin just yet. The Australian reports that the family is not in need of the cash and are committed to developing the bank. Conflicting to this is a report from Reuters that says talks between the family and ANZ are advancing and that sources say it is highly likely ANZ, who already owns 38.5% of the bank, will be successful in its bid for the stake. For the year to September 30, 2009, ANZ reported a profit of $2.94 billion, down on the year before. Checking ex-dividends, and there are two companies going ex-dividend today, Corporate Express with a 78 cent fully franked dividend and GrainCorp with a 15 cent fully franked dividend. Coming up, Thorn Group is going ex-dividend on Thursday, and Metcash on Friday.
To commodities, and the price of gold dropped $5.60 to US$1,223.30 an ounce for the June contract on Comex. Silver is up 18 cents at US$18.40 and copper is up 9 cent to US$2.99 a pound.
And the price of oil is up $1.34 to US$75.12 a barrel for July light crude in New York.
