The Australian share market is expected to open lower today after Wall Street fell for the fourth consecutive day, weighed down by losses in the financial sector and concern over the US economic outlook.
To the figures:
The Dow Jones Industrial Average started the week 61 points lower, closing at 12,090, the S&P500 dropped 14 points to close at 1,286 and the NASDAQ fell 30 points to close at 2,703.
European stocks closed mixed on Monday: London’s FTSE up 8 points, Paris down 27 and Frankfurt was down 24 points.
To Asian markets: Hong Kong and China were closed for a public holiday while Tokyo's Nikkei fell 112 points.
The Australian share market started the week 0.3 per cent down: The S&P/ASX 200 Index lost 14 points to close at 4,569. While on the futures market the SPI is currently 31 points lower.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0715 US cents, 65.53 Pence Sterling, 85.87 Yen and 73.53 Euro cents.
Economic news:
Due out today is the Reserve Bank of Australia’s June interest rate decision at its monthly board meeting and also the Australian Industry Group/Housing Industry Association performance of construction index for May.
Company news:
Shares in Qantas Airways Ltd (ASX:QAN) started the week by falling 3.69 per cent to a two year low of $1.96, despite the prospect of closer ties with Malaysia Airlines. The fall came amid the lingering threat of industrial action from the airlines employees and ongoing concerns of rising jet fuel prices. Yesterday the International Air Transport Association sliced its full year profit forecast for the industry by more than half, partly blaming higher oil prices. For the half year ended on 31 December 2010, Qantas reported a net profit of $239 million.
Yesterday shares in ERM Power Ltd (ASX:EPW) closed 2.22 per cent stronger at $1.62. That was on news the owner and operator of electricity generation assets will spend $61.7 million to boost its stake in the Oakey power station in Queensland. ERM will buy an additional 50 per cent interest to bring its ownership to 62.5 per cent. The acquisition is expected to provide shareholders with immediate value, adding $6.2 million to the 2012 financial year result. Since ERM listed at the end of last year, it reported a net loss of $6.3 million for the half year to 31 December.
Ex-dividends:
The only company going ex-dividend today is CSR with a $0.05 fully franked dividend. Coming up tomorrow is Trafalgar Corporate.
Commodities:
Gold is up $4.80 to $US1,547 an ounce for the August contract on Comex, silver is up $0.59 to $36.78 for July and copper is up $0.01 at $4.14 a pound. Oil is down $1.21 at $99.01 a barrel for July light crude in New York.
