The Australian share market may open lower today, as US stocks fell modestly following a disappointing report on unemployment, fuelling doubts over the country’s economic recovery.
In US economic news: The Labor Department reported that the economy lost 131,000 jobs in July, up from the 87,000 losses that were expected. Also, the forecast for job unemployment has risen .1% to 9.6%.
On Friday, the Dow Jones Industrial Average closed 21 points lower at 10,654. The S&P 500 Index is down 4 points to 1,122 and the NASDAQ is down 5 points to 2,288.
European stocks were lower; London’s FTSE down 33 points, Paris is down 48 and Frankfurt down 74.
Asian markets were mixed: Hong Kong’s Hang Seng up 127 points on Friday, Tokyo’s Nikkei down 12 points and China’s Shanghai Composite up 38 points.
The Australian share market finished flat on Friday. The S&P/ASX 200 Index closed flat at 4,566 and on the futures market the SPI200 is down 14 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 91.89 US cents, 57.45 Pence Sterling, 78.54 Yen and 69.13 Euro cents.
In local economic news: The ABS is today expected to release its data on Housing finance for June
In business news: Shares Commonwealth Bank of Australia (ASX:CBA) were down 0.68% to $52.59 last Friday. According to The Age, the Commonwealth Bank is likely to post a profit of over $6 billion when it releases its results for the year ended 30 June this Wednesday. With the Federal Election looming, the paper reports Commonwealth can expect scrutiny from politicians and consumer groups that the expected profit has come at the expense of customers. The Age reports analysts have predicted up to 40% growth in net profit from last year as a result of lower margins. Commonwealth Bank reported a profit of $4.7 billion for the year to 30 June 2009.
Shares in Qantas Airways (ASX:QAN) were up 1.16% to $2.62 at the end of last week. According to The Australian, Qantas will hold onto its terminal at Sydney airport, despite the Terminal 3 lease coming up for renewal in 2014. The paper reports Qantas failed to raise $500 million for an attempted sale in 2006, but that MAp Group (ASX:MAP) have now expressed interest in another attempt to purchase the terminal. However, The Australian says Qantas believes selling the asset would mean that it was too much at the mercy of MAp. Qantas posted a profit of $117 million for the year to June 30, 2009.
To ex-dividends, there are four companies going ex-dividend today: Careers Multilist with a .5 cent fully franked dividend, Coal & Allied Industries with a $4.50 fully franked dividend, Energy Resources with an 8 cent fully franked dividend and FFI Holdings with a 50 cent fully franked dividend.
To commodities, and the price of gold is up $6.20 to US$1203 an ounce for the August contract on Comex. Silver is up $0.15 cents to US$18.46 and copper is down $0.01 at $3.34 a pound.
The price of oil is down $1.31 to US$80.70 a barrel for September light crude in New York.
