The Australian share market looks set to open weaker today following mixed overseas leads. Wall St closed lower with financial shares taking a hit after Goldman Sachs Group reported a steep profit drop. The finance sector also grappled with the latest economic results showing a mixed outlook for the US housing market.
In US economic news: The US Census Bureau showed that new home construction sagged 4.3 per cent in December, while building permits climbed 16.7 per cent.
On Wednesday, the Dow Jones Industrial Average, dropped 13 points to close at 11,825. S&P500 lost 13 points to close 1,282 and the NASDAQ slid 40 points to close 2,725.
European stocks were lower: London’s FTSE down 80 points, Paris down 36 and Frankfurt down 61.
To Asian markets, stocks were higher: Hong Kong’s Hang Seng was up 266 points, Tokyo was up 38 points and China’s Shanghai Composite was up 49 points.
The Australian share market closed stronger on Wednesday. The S&P/ASX 200 Index advanced 33 points to close at 4,835 and on the futures market the SPI is down 49 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying $US1.0006, 62.56 Pence Sterling, 82.12 Yen and 74.26 Euro cents.
Company news: On Wednesday shares in BHP Billiton Ltd (ASX:BHP) lifted 0.94 per cent to close at $46.05. Global miner BHP Billiton has agreed to pay a temporary increase in royalties for minerals extracted in Chile to aid the country’s coastal areas last year struck with an earthquake and tsunami. The Associated Press reports that BHP has joined some of the biggest mining companies in Chile who will pay between 4 per cent and 9 per cent more for copper, gold and other minerals extracted through to 2014. The extra royalties are expected to raise over $1 billion. Also, some analysts have tipped BHP could post record iron ore December-quarter output when it today releases its results, following on from rival Rio Tinto Ltd (ASX:RIO) who earlier this week reported record December-quarter production figures. In the 2010 financial year BHP booked a net profit of $15.3 billion.
Yesterday shares in Leighton Holdings Ltd (ASX:LEI) eased 0.79 per cent to close at $31.20. The Queensland floods could chip as much as $215 million in revenue and $19 million in earnings off Leighton Holding’s fiscal 2011 result, according to The Australian. The paper says Macquarie Equities analysts have put the property developer’s revenue exposure to the damage at $1.3 billion, with Queensland accounting for around one quarter of Leighton’s contract mining revenue. Last week Leighton said it was still assessing the unfolding situation in Queensland and expects to determine the material impact within the next weeks. Leighton Holdings generated a net profit of $615 million in the 2010 financial year. To ex-dividends: The only company going ex-dividend today is Mirrabooka Investments with a 4 cent fully franked dividend.
To commodities: Gold is up $2.00 to $US1,370 an ounce for the February contract on Comex, silver is down $0.11 to $28.80 for March and copper is down $0.06 to $4.37 a pound. Oil is down $0.52 at $90.86 a barrel for February light crude in New York.
