The SPI is indicating a negative start to the day, US stocks dropped as oil prices shot up. Worries about oil supply took their toll on the markets. Meanwhile, gold prices reached new highs, tension in the Middle East boosting the metal’s appeal as a safe investment.
US economic news: The US manufacturing sector grew in February at its fastest pace in almost seven years. The Institute for Supply Management’s factory index increased to 61.4. Readings greater than 50 signal growth.
On Monday, Dow Jones Industrial Average, closed 168 points lower to 12,058, S&P500 fell 21 points to close 1,306 and the NASDAQ fell 45 points to close 2,737.
European stocks were weaker: London’s FTSE down 58 points, Paris fell 43 and Frankfurt down 49.
To Asian markets and stocks were higher: Hong Kong’s Hang Seng was up 58, Tokyo Nikkei was up 130 and China’s Shanghai Composite was up 14 points.
The Australian share market finished lower on Monday. The S&P/ASX 200 Index easing 5 points to close at 4,826 and on the futures market the SPI is down 58 points.
Turning to currencies and the Australian Dollar at 8:30AM was buying $US1.0138 cents, 62.36 Pence Sterling, 83.03 Yen and 73.6 Euro cents.
Economic news: The Australian Bureau of Statistics will release its national accounts report for the December quarter.
Company news: Shares in AMP Ltd (ASX:AMP) strengthened 0.75 per cent to close at $5.35. The federal government has given the go-ahead to AMP’s $14 billion merger with AXA Asia Pacific Holdings Ltd (ASX:AXA). Treasurer Wayne Swan said the new entity would be a strong competitor to major banks. The multi-billion-dollar deal followed a thorough assessment of the impact on Australia’s national interest. The planned merger will create a “fifth pillar” in Australian financial services, rivalling the big four banks. AMP reported a full year net profit of $775 million to December 31, 2010.
Shares in Telstra Corporation Ltd (ASX:TLS) fell 0.18 per cent to close at $2.78. The telco’s and Consolidated Media Holdings’ boards have agreed in principle for Foxtel to enter a $2 billion takeover bid for Austar United Communications. That’s according to the Australian Financial Review. Telstra owns 50 per cent of the pay television company Foxtel. The telco has previously prevented moves by Foxtel to acquire its regional rival. US based Liberty Global, Austar’s largest shareholder says it’s open to a bid. Newscorp, a 25 per cent owner of Foxtel has dropped its objections. In its first half of the 2011 financial year, Telstra reported a net profit of $1.2 billion.
To ex-dividends: 11 companies are going ex-dividend today. Among them we have Blackmores with a $0.44 fully franked dividend, Caltex with a $0.30 fully franked dividend, Rio Tinto with a $0.62 fully franked dividend and Tatts Group with a $0.10 fully franked dividend.
To commodities: Gold is up $21.30 to $US1,431.20 an ounce for the April contract on Comex, settling at an all time high, silver is up $0.61 to $34.42 for March and copper is up 0.01 at $4.49 a pound. Oil is up $2.66 at $99.63 a barrel for April light crude in New York.
