The Australian share market is expected to open lower today, on weak offshore leads after US companies cut earnings forecasts, and Europe’s debt woes deepen.
In US economic news, the Federal Emergency Management Agency program (FEMA) is almost $18 billion in the red, with the 2005 Katrina and Rita hurricanes to blame. Experts are suggesting the agency will have to borrow from the US Treasury to continue.
On Friday the Dow Jones Industrial Average closed 93 points lower at 12,512, the S&P500 lost 10 points to close at 1,333 and the NASDAQ lost 20 points to close at 2,803.
European stocks ended the week lower. London was down 8, Paris was down 37 and Frankfurt down 91.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was up 36, Tokyo Nikkei was down 14 and China’s Shanghai Composite was down 1 point.
On Friday the Australian share market ended the week slightly lower. The S&P/ASX 200 Index lost 24 points to close at 4,732. While on the futures market the SPI is currently down 39 points.
Turning to currencies and the Australian Dollar at 7.45AM was buying $1.06.57 US cents, 65.7 Pence Sterling, 87.14 Yen and 75.41 Euro cents.
Looking at company news, on Friday shares in Woolworths (ASX:WOW) were down 0.4 per cent at $27.30. The company is scouting for potential growth this week in India. Its chief executive and chair of Woolworths India, Ramnik Narsey, told the Australian Financial Review that the Indian government recognises there is a skill set that foreign companies can bring to the country, and it’s looking for foreign capital. Mr Narsey said Woolworths is ready to take advantage of expected deregulation in India. Woolworths generated an interim net profit of $1.2 billion in the last half of 2010.
At the end of last week shares in Seven West Media Ltd (ASX:SWM) were up 0.68 per cent to close at $4.45. Fairfax media has today speculated that the company’s new boss, David Leckie, has ''lost'' almost half of his $2.5 million annual salary for his new posting, judging by a revelation last week of the number of shares he owns. The media boss claims he has 751,252 shares in his formal notice. Based on Friday's closing price, that would make Leckie's stake in the company about $3.34 million. For the six months to December 31 2010, Seven West Media Ltd (ASX:SWM) reported a net profit of $50.1 million.
To ex-dividends: Dulux Group is going ex dividend today, with a fully franked dividend of $0.08.
In commodities, Gold is up $16.50 to $US1,508 an ounce for the June contract on Comex, silver is up $0.16 to $35.09 for July and copper is up $0.09 at $4.12 a pound. Oil is up $1.17 at $100.10 a barrel for July light crude in New York.
