The Australian share is expected to fall this morning, as concerns over Japan’s unfolding nuclear power plant crisis and continuing unrest in the Middle East weighs on global markets. On Wall St US stocks widened losses after disappointing housing data.
US economic news: The Commerce Department reported that new home construction dropped more than had been expected, falling 22.5 per cent in February. The number of permits for future housing construction dipped 8.2 per cent, representing a new all-time low.
The Labor Department said that the cost of producing goods is increasing. The producer price index rose 1.6 per cent in February, the largest increase in almost two years and more than had been expected.
On Wednesday The Dow Jones Industrial Average closed 242 points lower at 11,613, S&P500 fell 25 points to close 1,257 and the NASDAQ dropped 51 points to close 2,617.
Yesterday European stocks closed lower: London’s FTSE down 97 points, Paris down 84 and Frankfurt down 134.
To Asian markets and stocks closed higher: Hong Kong’s Hang Seng was up 23, Tokyo Nikkei rose 489 and China’s Shanghai Composite firmed 35 points.
The Australian share market closed stronger on Wednesday: The S&P/ASX 200 Index added 30 points to close at 4,558. On the futures market the SPI is currently down 76.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US97.74 cents, 61.07 Pence Sterling, 75.9 Yen and 70.25 Euro cents.
Economic news: Due out today is the Reserve Bank of Australia’s quarterly bulletin.
Company news: On Wednesday shares in Woolworths Ltd (ASX:WOW) eased 0.98 per cent to close at $26.31. Woolworths could be asked to appear as a witness in a Federal Court case, after it was yesterday revealed that the company allegedly approached SPAR Australia and proposed taking over Franklins stores. In a case that raises question about supermarket competition, Australian regulators have opposed Metcash Ltd’s (ASX:MTS) proposed $215 million purchase of Franklins. The Australian Competition and Consumer Commission claims the purchase would allow Metcash to dominate the grocery independent wholesalers in New South Wales. With Woolworths now in the picture, Metcash has requested the supermarket giant be subpoenaed to testify. Woolworths posted a net profit of $1.2 billion in the 2010 financial year.
Shares in Lynas Corporation Ltd (ASX:LYC) jumped 7.41 per cent yesterday to close at $1.88, following news the rare earths producer had inked a deal to sell two non-core assets to Forge Resources Ltd (ASX:FRG). Forge will pay Lynas $20.7 million cash, 7 million Forge options and royalties from the sub-leases from Lynas’ Mount Weld rare earths project in Western Australia. Lynas also yesterday provided an update to its Mt Weld project, advising that the first feed of ore into the concentration plant is scheduled for the end of this month. Lynas has confirmed the first feed of concentrate into the kiln at the Lynas Advanced Materials Plant in Malaysia is on schedule for the third quarter of this year. In the first six months of the 2011 financial year Lynas Corporation booked a net loss of $20.5 million.
Ex-dividends: Two companies are going ex-dividend today and they are: Retail Food Group with a $0.07 fully franked dividend and WAM Active with a $0.04 fully franked dividend. Coming up tomorrow are AGL Energy with a $0.29 unfranked dividend and Ideas International with a $0.04 dividend, 75 per cent franked.
Commodities: Gold is up $3.30 to $US1,396 an ounce for the April contract on Comex, silver is up $0.36 to $34.47 for May and copper is up $0.06 at $4.20 a pound. Oil is up $0.80 at $97.98 a barrel for April light crude in New York.
