The Australian share market may be in for a weaker start this morning following late falls on Wall St overnight.
US stocks slipped into the red as investors mulled over a better than expected read on the housing market and a surprise jump in unemployment claims.
The Labor Department reported that the number of Americans filing for unemployment benefits unexpectedly rose last week. Claims jumped 12,000 to 465,000. Economists had predicted that claims would drop to 450,000.
And the National Association of Realtors reported that existing home sales increased 7.6% to 4.13 million units in August, topping economist expectations.
On Thursday, the Dow Jones Industrial Average closed 77 points lower at 10,662. The S&P 500 Index fell 9 to close at 1,125 and the NASDAQ dropped 7 closing at 2,327.
European stocks were also lower: London’s FTSE down 5 points, Paris lost 24 and Frankfurt also slipped 24 points.In Asian markets: Hong Kong’s Hang Seng, Tokyo’s Nikkei and China Shanghai Composite were closed for various public holidays.
The Australian share market finished flat on Thursday. The S&P/ASX 200 Index closed 8 points higher at 4,634 and on the futures market the SPI200 is down 45 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 94.86 US cents, 60.49 Pence Sterling, 80.11 Yen and 71.26 Euro cents.
In local economic news: Out today is the Melbourne Institute bulletin of economic trends.
In business news: Shares in the Commonwealth Bank of Australia Ltd (ASX:CBA) dropped 0.13% to $52.43 on Thursday. The bank has warned of possible rate hikes as early as next month. The Australian reports the bank saying that a rise in interests rates will come as the RBA tries to keep inflation in check. The Commonwealth Bank is forecasting an increase in interest rates to 6 per cent by the end of next year. The Commonwealth Bank of Australia booked a profit of $5.68 billion for the year to June 30, 2010.
Shares in Bauxite Resources Ltd (ASX:BAU) declined 2.44% to $0.20 yesterday. The Aussie miner and China’s Yankuang are a step close to building a new alumina refinery in Western Australia. Bauxite Resources says the two companies are to sign a further heads of agreement today to complete a bankable feasibility study for the design and construction of a modern refinery in the southwest of Western Australia to refine Darling Range bauxite into alumina. Bauxite Resources posted a loss for the 12 months to December 31, 2009.
To ex-dividends: Among those companies going ex-dividend today is Aurora Sandringham with a 1.5 cent unfranked dividend, Aspen Group with a 1.05 cent unfranked dividend, Belmont Holdings with a 3.5 cent fully franked dividend, Hastings Diversified Utilities Fund with a 3 cent unfranked dividend, Myer Holdings with an 11.5 cent fully franked dividend, and Sirtex Medical with a 7 cent fully franked dividend.
To commodities: and the price of gold is up $4.10 to US$1294 an ounce for the September contract on Comex, silver is up $0.16 to $21.19 and copper is up $0.03 at $3.58 a pound.
The price of oil is up $0.47 at US$75.18 a barrel for November light crude in New York.
