The Australian share market looks likely to open lower today, after Wall St closed mainly in the red ahead of the earnings season. US stocks slipped on renewed fears about the Europe’s debt crisis, with debt-laden Portugal coming under pressure from euro-zone countries to accept a bailout.
On Monday, the Dow Jones Industrial Average, closed 37 points lower to 11,637. S&P500 lost 2 points to close 1,270 and the NASDAQ firmed 5 points to close 2,708.
European stocks were lower: London’s FTSE down 28 points, Paris down 64 and Frankfurt down 91.
To Asian markets, stocks were also lower: Hong Kong’s Hang Seng was down 159 points, Tokyo was closed and China’s Shanghai Composite closed 47 points down.
The Australian share market finished slightly higher on Monday. The S&P/ASX 200 Index rose 7 points to close at 4,712 and on the futures market the SPI is down 14 points. Turning to currencies and the Aussie Dollar at 8:35AM was buying 99.67 US cents, 63.97 Pence Sterling, 82.41 Yen and 76.95 Euro cents.
Economic news: Expected out today, the Australian Bureau of Statistics international trade in goods and services for November 2010.
Company news: On Monday Shares in Transfield Services Ltd (ASX:TSE) closed 0.31 per cent higher at $3.23. As the floods in Queensland continue to reap havoc throughout the state, it appears Transfield Services will emerge largely unscathed. The company has advised that there has been no material impact to its earnings as a result of Queensland’s extreme weather conditions. Transfield says while there been no property or equipment damage, the company does expect some delays though work volumes are likely to be recouped in the current financial year. Transfield Services booked a net profit of $73.55 million in the year to 30 June 2010.
Yesterday shares in Fletcher Building Ltd (ASX:FBU) edged up 0.68 per cent to close at $5.94. Dual-listed Fletcher Building has boosted the cash component of its takeover for Crane Group Ltd (ASX:CRG), in a deal valued at around $740 million. Fletcher’s revised offer for the remaining ordinary shares in Crane it does not already own, includes one Fletcher share and $3.47 in cash for each Crane share, representing a total value of $9.35 per share. The updated cash offer represents a 4 cent improvement from the $3.43 originally offered, that was last month rejected by Crane. In the year to 30 June 2010, Fletcher Building posted a net profit of $229.12 million.
To ex-dividends: The only company going ex-dividend today is Newhaven Hotels with a 4 cent fully franked dividend. Coming up tomorrow is CSR with a 9.13 cent fully franked dividend.
To commodities: Gold is up $5.20 to $US1,374 an ounce for the February contract on Comex, silver is up $0.19 to $28.86 for March and copper is down $0.02 to $4.26 a pound. Oil is up $1.22 at $89.25 a barrel for February light crude in New York.
