Shares are expected to start well into negative territory this morning following a dismal session on offshore markets. Euro zone troubles reached a new climax overnight as the Greek Prime Minister George Papandreou offered to resign amid violent protests in the capital Athens.
Economics
In the US, the cost of living rose more than forecast in May. The consumer price index rose 0.2 per cent last month and was up 3.6 per cent on a year ago. It’s the biggest year on year advance since October 2008.
Separately, figures from the Federal Reserve show industrial production rose less than forecast in May...adding to signs the US economy is cooling down.
Figures
The Dow Jones Industrial Average is down 179 points, closing at 11,897, the S&P500 dropped 22 points to close at 1,265 and the NASDAQ is down 47 points to close at 2,631.
European stocks closedlower:London’s FTSE shed 61 points, Paris slipped 58 points and Frankfurt was down 90 points.Asian markets were mixed: Hong Kong’s Hang Seng was fell 152 points, Tokyo’s Nikkei was up 27 and China’s Shanghai composite was down 25.
The Australian share market finished lower on Wednesday:The S&P/ASX 200 Index fell 18 points to close at 4,567. While on the futures market the SPI is down 53 points.
Currencies
The Australian Dollar at 7:30AM was buying $1.0567 US cents, 65.3 Pence Sterling, 85.61 Yen and 74.58 Euro cents.
Companies
Shares in the Commonwealth Bank (ASX:CBA)closed 0.26per cent lower at $50.32 yesterday.
It’s been revealed Commonwealth Bank chief Ralph Norris considered a possible $7 billion buyout of Insurance Australia Group last year. That’s according to Fairfax media. The Commonwealth Bank strongly rejects the suggestion. The move would, however, create a financial services giant combining the largest lender with the dominant car and home insurer. QBE has been interest in IAG for some time now but the report claims its purchasing power has been reduced given the spate of recent natural disasters.
For the half year ended December 31, 2010, CBA reported a net profit of $3.06 billion.
Yesterday shares inStockland Ltd (ASX:SGP)closed steady at $3.46.
According to the Australian Financial Review property group Stockland and developer Lang Walker looks set to announce Australia’s largest property deal in recent years. The deal would see Stockland acquire Walker’s Point Cook Town Centre and land on the edges of Melbourne. Walker would then take control of Energex House in Brisbane and MY-UNA Complex in Canberra. Walker Corporation also looks set to receive a significant cash payment.
For the half year ended December 31, 2010, Stockland posted a profit of $425 million.
Ex-dividends
There are no companies going ex-dividend today. Tomorrow though we have Paperlinx SPS Trust and Thorn Group.
commodities
Gold is up $1.80 to $US1,526 an ounce for the August contract on Comex, silver is flat at $35.41 for July and copper is down 3 cents at $4.12 a pound. Oil is down $4.56 at $94.81 a barrel for July light crude in New York.
