The Australian share market is expected to extend yesterday’s losses after receiving negative offshore leads. US stocks fell sharply after renewed concerns over Europe’s debt crises saw investors flee to safer assets.
To the figures: The Dow Jones Industrial Average started the week 131 points lower, closing at 12,381, the S&P500 dropped 16 points to close at 1,317 and the NASDAQ fell 44 points to close at 2,759.
European stocks closed lower on Monday: London’s FTSE down 113 points, Paris down 84 and Frankfurt was down 145 points.
To Asian markets and stocks were also lower: Hong Kong’s Hang Seng was down 488, Tokyo Nikkei was down 146 and China’s Shanghai Composite was down 84.
The Australian share market started the week almost 2 per cent down: The S&P/ASX 200 Index lost 89 points to close at 4,643. On the futures market the SPI is currently 29 points lower.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0512 US cents, 65.2 Pence Sterling, 86.18 Yen and 74.81 Euro cents.
Company news: Shares in Sundance Resources Ltd (ASX:SDL) fell 5.41 per cent on Monday to close at $0.35. The head of Sundance Resources has revealed five Chinese companies are interested in becoming a strategic partner in the iron ore explorer’s $4.4 billion Mbalam project in West Africa. CEO Giulio Casello has told the Australian Financial Review that the interested Chinese parties are in addition to interest outside of China. Sundance is looking to pick a strategic partner by the end of June in a deal that could see the company sell up to a 50 per cent stake in the Mbalam iron ore project in exchange for iron ore supply. In 2010 financial year Sundance Resources recorded a net loss of $9.2 million.
Yesterday shares in Ceramic Fuel Cells Ltd (ASX:CFU) ended the day steady at $0.11. Ceramic Fuel Cells has signed its first UK distribution agreement to market, sell, install and service the company's BlueGen gas to electricity units in the UK. The deal’s been struck with independent renewable energy project developer RES On-Site Ltd and, while the value hasn’t been revealed, it follows similar BlueGen distribution agreements in Australia. BlueGen uses ceramic fuel cells to turn natural gas into electricity and heat for hot water. In the first half of its 2011 financial year, Ceramic Fuel Cells posted a net loss of $8.4 million.
Ex-dividends: No companies are going ex-dividend today. Coming up this week are Marbletrend Group, Orica and SP AusNet.
Commodities: Gold is up $6.50 to $US1,515 an ounce for the June contract on Comex, silver is down $0.18 to $34.90 for July and copper is down $0.13 at $3.99 a pound. Oil is down $2.40 at $97.70 a barrel for July light crude in New York.
