The Australian share market is likely to open lower today, with uncertainty still surrounding the outcome of the Federal election. Following weak leads from overseas markets, local stocks are expected to fall as a hung parliament is yet to provide assurance over who will govern.
In US economic news: Negative economic reports released last week fuelled concerns over a double dip recession and slower economic recovery. The Labor Department reported that jobless rates increased in 14 states, and remained unchanged in 18. A separate government report revealed that weekly jobless claims increased to their highest level since November.
On Friday, the Dow Jones Industrial Average closed 58 points lower at 10,214. The S&P 500 Index is down 4 points to 10,072 and the NASDAQ is flat at 2,180.
European stocks were lower; London’s FTSE down 16 points, Paris is down 46 and Frankfurt down 70.
Asian markets were lower: Hong Kong’s Hang Seng down 91 points on Friday, Tokyo’s Nikkei down 183 points and China’s Shanghai Composite down 46 points.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 48 lower to 4,431 and on the futures market the SPI200 is down 9 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 88.73 US cents, 57.13 Pence Sterling, 75.98 Yen and 69.88 Euro cents.
In business news: Shares in BHP Billiton Ltd (ASX:BHP) were down 1.04% to $37.90 last Friday. The battle to takeover Canada’s Potash Corp has intensified, with media reports that BHP Billiton has delivered full page advertisements in North American press to sweeten its US$40 billion hostile offer. BHP is expected to announce its annual earnings this Wednesday, with speculation that the mining giant will report over 17% growth in annual profit to around $14 billion. Analysts have however downgraded expected earnings guidance, since BHP’s production report released in July warned of the affects of the oil spill in the Gulf of Mexico. BHP Billiton Ltd recorded a profit of $7.2 billion for the year ended 30 June 2009.
Shares in Foster’s Group Ltd (ASX:FGL) were up 0.34% to $5.82 at the end of last week. Australia’s biggest brewer Foster’s has attracted another potential bidder for its beer unit, The Australian reporting that London-listed SAB Miller is plotting a takeover of around $12 billion. According to the paper, SAB Miller join Japan’s Asahi and Canada’s Molson Corrs as prospective bidders. The company last week announced Christine Nixon will resign as a non-executive director. Foster’s Group posted a profit of $438 million for the year to June 30 2009.
To ex-dividends, there are nine companies going ex-dividend today, all fully franked. Among them, Australian Leaders Fund with an 8 cent dividend and Australian United Investment with a 14 cent dividend. And also, Telstra with a 14 cent dividend, and Woodside Petroleum with a 54.69 cent dividend.
To commodities: and the price of gold is down US$6.60 to $1227, silver is down US$0.34 to $17.98 and copper is down $0.03 at $3.29 a pound.
The price of oil is down $0.61 to US$73.82 a barrel for October light crude in New York.
