The Australian share market is expected to open weaker today, following negative offshore leads. Global markets grappled with the repercussions of Japan’s earthquake and ongoing unrest in North America and the Middle East, resulting in a broad sell-off.
The Dow Jones Industrial Average began the week 51 points lower, closing at 11,993, S&P500 fell 8 points to close 1,296 and the NASDAQ dropped 15 points to close 2,701.
European stocks closed lower on Monday: London’s FTSE down 53 points, Paris down 51 and Frankfurt down 115.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was up 96, Tokyo Nikkei plunged 634 and China’s Shanghai Composite was up 4 points.
The Australian share market trimmed earlier losses to start the week 0.4 per cent lower: The S&P/ASX 200 Index fell 18 points to close at 4,626. On the futures market the SPI is currently 5 points lower.
Turning to currencies and the Australian Dollar at 8:45AM was buying $US1.0093 cents, 62.42 Pence Sterling, 82.41 Yen and 72.15 Euro cents.
Economic news: Due out today is the Australian Bureau of Statistics lending finance data for January and new motor vehicles sales data for February. And also, the minutes of Reserve Bank of Australia’s March monthly board meeting.
Company news: Shares in Qantas Airways (ASX:QAN) slipped 1.76 per cent to close at $2.23 on Monday. Qantas CEO Alan Joyce has come out in support of the federal government’s proposed carbon tax. Mr Joyce has told the Australian Financial Review that Qantas believes all organisations should do whatever they can to reduce emissions and a price on carbon will help in this case. The AFR reports that 88 per cent of Qantas customers choose not to pay an additional fee to offset carbon emission of their travel, indicating their reluctance to take action when their hip pocket suffers. For the half year ended 31 December 2010, Qantas reported a net profit of $239 million.
Yesterday shares in Rio Tinto Ltd (ASX:RIO) firmed 0.44 per cent to close at $79.15. Rio Tinto has boosted its stake in Mozambique-focused coal miner Riversdale Mining Ltd (ASX:RIV). Last week the global mining giant announced a sweetened $3.8 billion offer, lifting its bid from $16 to $16.50 per Riversdale share to entice shareholders to accept the deal. In a notice to the Australian Securities Exchange Rio has advised that its interest in Riversdale has now grown 8.27 per cent to 26.13 per cent. In the year to 31 December 2010, Rio Tinto posted a net profit of $14.9 billion.
Ex-dividends: Seven companies are going ex-dividend today: Billabong International with a $0.16 cent 50 per cent franked dividend, Devine with a $0.01 cent fully franked dividend, Envestra with a $0.03 cent unfranked dividend, Miclyn Express Offshore with a $0.03 cent unfranked dividend, Symex Holdings with a $0.01 cent fully franked dividend, Wam Research with a $0.03 cent fully franked dividend and Wellcom Group with an $0.08 cent fully franked dividend.
Commodities: Gold is up $3.10 to $US1,424 an ounce for the April contract on Comex, silver is down $0.10 to $35.84 for May and copper is down $0.02 at $4.19 a pound. Oil is up $0.03 at $101.19 a barrel for April light crude in New York.
