The Australian share market is likely to start today’s sessions slightly lower, following weak overseas leads, with US stocks edging lower as investors retreated following a five month rally that pushed the market to two and a half year highs.
On Wednesday, the Dow Jones Industrial Average, closed 7 points higher to 12,240, S&P500 fell 4 points to close 1,321 and the NASDAQ down 8 points to close 2,789.
European stocks were lower: London’s FTSE down 39 points, Paris down 18 and Frankfurt fell 2.
To Asian markets, stocks were lower: Hong Kong’s Hang Seng was down 320 points, Tokyo fell 18 points and China’s Shanghai Composite dropped 25 points.
The Australian share market finished higher on Wednesday. The S&P/ASX 200 Index closed 14 points stronger to 4,905 and on the futures market the SPI is down 5 points. Turning to currencies and the Australian Dollar at 8:20AM was buying $1.0117 US cents, 62.83 Pence Sterling, 83.36 Yen and 73.7 Euro cents.
In economic news: Today we will see ABS labour force data for January.
Company news: On Wednesday shares in ASX Ltd. (ASX:ASX) rose 0.22 per cent to close at $36.70. Pressure is mounting on the ASX to join forces with a global partner, according to media reports. The London Stock Exchange yesterday confirmed it will buy the owner of the Toronto Stock Exchange – with the effects of the announcement being felt closer to home. If the plan can overcome political opposition in Canada, the group will be the largest platform for mining and energy listings worldwide. ASX Ltd reported a financial year net profit of $328 million in 2010.
Yesterday shares in Rio Tinto Ltd (ASX:RIO) rose 1.21 per cent to close at $88.38. The Guinean government has announced it will more than double its share of mining projects, putting Rio’s plans for the world’s largest undeveloped iron ore resource in jeopardy. Guinea’s new mining minister told The Australian Financial Review he would meet Rio officials next week to discuss the planned changes. For the six months to 30 June 2010, Rio Tinto reported a net profit of $7.4 billion.
To commodities: Gold is up $1.40 to $US1,365 an ounce for the April contract on Comex, silver is steady at $30.28 for March and copper is down $0.05 to $4.52 a pound. Oil fell $0.23 at $86.71 a barrel for March light crude in New York.
