The Australian share market may open lower today, following weak overseas leads. US stocks closed Friday’s session mixed amid a series of economic reports. Locally the Australian dollar hit parity with the US dollar over the weekend just gone, for the first time since it was floated in 1983.
In US economic news: A report from The Commerce Department on the measure of inflation, showed the Consumer Price Index (CPI) rose 0.1 per cent in September. The department also revealed retail sales increased 0.6 per cent to $367.7 billion last month, more than expected by economists’. However consumer sentiment declined, with The University of Michigan's consumer sentiment index falling from a read of 68.9 last month to 67.9 for early October, below economists’ expectations. The Treasury Department reported the US budget deficit totalled $1.3 trillion in the 2010 financial year, slightly less than the year before. On Friday, the Dow Jones Industrial Average closed 32 points lower at 11,063. The S&P 500 Index is up 2 at 1,176 and the NASDAQ is up 33 at 2,469. European stocks were mixed: London’s FTSE down 24 points, Paris is up 8 and Frankfurt up 37.
To Asian markets, stocks were also mixed: Hong Kong was down 95 points, Tokyo’s Nikkei was down 83 points and China’s Shanghai Composite up 92.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 10 lower to 4,689 and on the futures market the SPI200 is down 16 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 99.32 US cents, 62.21 Pence Sterling, 80.84 Yen and 71.01 Euro cents.
In local economic news: Expected out today the Australia Bureau of Statistics sales of new motor vehicles for September.
In company news: Shares in Rio Tinto Ltd (ASX:RIO) closed 1.36% up at $83.20 on Friday. Rio Tinto and BHP Billiton Ltd (ASX:BHP) are negotiating an exit from their proposed $116 billion joint venture in the Pilbara region of Western Australia, without triggering a $250 million break clause, says The Sunday Times. Last week Rio expressed disappointment that German regulators had indicated they would block the planned iron ore production tie-up between the global miners, because of concerns of anti-competition in the industry. European regulators are also rumoured to be considering rejecting the merger. While the miners have not yet commented on the status of the deal, according to the paper, Rio and BHP are now looking to abandon the joint venture, with EU anti-trust regulators set to issue a statement of objections to the miners within days. Rio Tinto posted a profit of $7.36 billion for the first half of 2010.
Shares in David Jones Ltd (ASX:DJS) closed 1.02% down at $4.83 on Friday. The sexual harassment lawsuit against ex-David Jones CEO Mark McInnes looks to be almost over, with Fairfax Media reporting former DJ’s publicist Kirsty Fraser-Kirk is understood to have accepted less than $1 million to settle the case, significantly under the $37 million Ms Fraser Kirk had earlier targeted. In June Mr McInnes resigned as head of the retailer following an admission of inappropriate behaviour towards a female staff member on two occasions. Last week Ms Fraser-Kirk emerged smiling from what were thought to be mediation talks. While Mr McInnes and Ms Fraser-Kirk declined to comment as they left the talks, Fairfax reports Ms Fraser-Kirk’s father said he was “relieved as ever”. David Jones booked a $100.46 million profit in the six months to 23 January 2010.
To ex-dividends: Amcom Telecommunications is going ex-dividend today with a 1 cent fully franked dividend, as well as Wilson Investment Fund with a 4 cent fully franked dividend. Also coming up this week we have New Hope Corporation and Trust Company.
To commodities: The price of gold is down US$5.60 to US $1372 an ounce for the December contract on Comex, silver is down US$0.15 to $24.29 and copper is up $0.02 at $3.84 a pound. The price of oil is up $1.44 to US$81.25 a barrel for November light crude in New York.
