The Australian share market looks to be in for a softer start to the week, the futures suggesting a lower start, after a sell-off in US stocks lead to Wall St logging its largest weekly fall in three months. Investors concerned over economic growth in China and the resurgence of sovereign debt in Europe.
In US economic news: The University of Michigan index of consumer sentiment for early November increased in line with expectations to 69.3 from 67.7.
On Friday, the Dow Jones Industrial Average closed 91 points lower at 11,193. The S&P 500 Index closed 14 points weaker at 1,199 and the NASDAQ closed 37 points down at 2,518.
European stocks were mixed: London’s FTSE down 18 points, Paris is down 36 and Frankfurt up 11.
To Asian markets, stocks were lower: Hong Kong’s Hang Seng was down 478 points, Tokyo’s Nikkei was down 137 points and China’s Shanghai Composite down 162.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 36 lower to 4,693 and on the futures market the SPI200 is down 19 points. Turning to currencies and the Aussie Dollar at 7:35AM was buying 98.84 US cents, 61.33 Pence Sterling, 81.51 Yen and 72.09 Euro cents.
In local economic news: The Australian Bureau of Statistics lending finance data for September is expected out today, and also sales of new motor vehicles for October.
Company news: Shares in BHP Billiton Ltd (ASX:BHP) closed 0.65% weaker at $44.30 on Friday. BHP’s CEO Marius Kloppers is tomorrow expected to detail plans for a significant share buyback or, potential acquisitions to target, when the global miner holds its annual meeting tomorrow. Mr Kloppers is likely to address BHP’s stance on its $40 billion bid for PotashCorp, following Canadian regulators blocking the takeover earlier this month. The inability to secure PotashCorp represents Mr Kloppers third failure to lock down a major acquisition. In the 2010 financial year BHP Billiton booked a net profit of $15.26 billion.
Shares in OneSteel Ltd (ASX:OST) closed 3.4% firmer at $2.74 at the end of last week. Global miner Anglo American plc has agreed to sell its Moly-Cop and AltaSteel to Australia’s OneSteel Ltd for $US932 million on a debt and cash free basis. Anglo American says the business consists of the grinding media and steel products businesses of Anglo American located in North and South America, and includes the joint venture interests in the Donhad grinding media business in Australia and GenAlta Recycling Inc in Canada. OneSteel CEO Geoff Plummer says the acquisition positions the company as a global player in grinding media with as well as providing OneSteel with a great platform for future growth in mining consumables. OneSteel improved its earnings in fiscal 2010, reporting a net profit of $260.7 million.
To ex-dividends: And there are four companies going ex-dividend today. They are DuluxGroup with a 3 cent fully franked dividend, Katana Capital with a 1 cent fully franked dividend, Telecom of New Zealand with a 2.738 cent unfranked dividend, and Tamawood with a 13 cent fully franked dividend. Coming up tomorrow is Washington H. Soul Pattinson and Co. with a 32.5 cent fully franked dividend.
To commodities: The price of gold is down $US37.80 to $US1365 an ounce for the December contract on Comex, silver is down $US1.46 to $25.94 and copper is down $0.13 at $3.89 a pound. The price of oil is down $2.93 to $US84.88 a barrel for December light crude in New York.
