Aussie shares may be in for a lower start today, US stocks falling back from two-year highs to close weaker, dragged down by financial stocks. And while equities remained steady to slightly lower, gold surged to hit a record high above $US1403 an ounce.
In US economic news: The Federal Reserve Bank of New York revealed total consumer debt was $11.6 trillion at the end of September, which represents a decline of 7.4%, or $922 billion, from the peak recorded in the third quarter of 2008.
On Monday, the Dow Jones Industrial Average closed 37 points lower at 11,407. The S&P 500 Index closed 3 points lower at 1,223 and the NASDAQ closed 1 point higher at 2,580.
European stocks were lower: London’s FTSE down 25 points, Paris was down 3 and Frankfurt down 4.
To Asian markets, stocks were higher: Hong Kong’s Hang Seng was up 88 points, Tokyo’s Nikkei was up 107 points and China’s Shanghai Composite up 30.
The Australian share market finished slightly lower on Monday. The S&P/ASX 200 Index closed 22 lower to 4,778 and on the futures market the SPI200 is down 23 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 1.01 US cent, 62.77 Pence Sterling, 82.23 Yen and 72.79 Euro cents.
In local economic news: Expected out today, the Dun & Bradstreet business expectations survey, and also, National Australian Bank monthly business survey for October.
In company news: Shares in Campbell Brothers Ltd (ASX:CPB) rose 1.1% to close at $34.84 on Monday. Campbell Brothers have moved a step closer to completely acquiring all of Ammtec Ltd, announcing it has secured a 90 per cent stake in the mineral testing and consulting company. Campbell Brothers wholly-owned subsidiary Australian Laboratory Services Ltd, is now poised to compulsorily acquire the remaining 10 per cent interest from Ammtec’s shareholders. Campbell Brothers says shareholders who accept the offer before the closing date will be paid for their shares within five working days, while payments will be delayed for those shareholders who do not accept before the offer closes this Friday, on 12 November. Campbell Brothers booked a profit of $74.89 million in the year to 31 March 2010.
Shares in Ten Network Holdings Ltd (ASX:TEN) closed 2.69% lower at $1.45 on Monday. Ten is reportedly closer to resolving its board issues. According to the Australian a comprise could today be reached that would give the network’s latest and largest shareholder, James Packer, and Lachlan Murdoch, seats on the board while dropping demands for a third board nomination, with sources telling the paper that ongoing negotiations are relatively positive. Following Mr Packer securing an 18 per cent stake in Ten and reportedly offering half to Mr Murdoch, Ten last week offered both men directorships. Executive chairman Nick Falloon has announced he will step down from his position in December. Ten Network Holding moved into the black with a profit of $150 million in the 2010 financial year.
To ex-dividends: There are three companies going ex-dividend today and they are CSR with a 3 cent fully franked dividend, Desane Group Holdings with a 2 cent unfranked dividend and Kathmandu Holdings with a 5.37 cent fully franked dividend. Coming up later this week are Bank of Queensland and National Australian Bank.
To commodities: The price of gold is up US$5.50 to US $1403 an ounce for the December contract on Comex, silver is up US$0.68 to $27.00 and copper is up $0.01 at $4.00 a pound. The price of oil is up $0.21 to US$87.06 a barrel for December light crude in New York.
