The Australian share market is set to open flat, lacklustre offshore leads had been pointing to a weaker start, but, news just in – a media report saying that Greece has concluded talks with European Union and IMF inspectors on a five year austerity plan will have a more positive effect on the market.
US economic news
New home sales fell 2.1 per cent to an annual rate of 319,000 units in May. And jobless claims climbed by 9,000 to 429,000 last week. Anything above 400,000 is considered too high.
Figures
On Thursday, The Dow Jones Industrial Average was down 60 points to close at 12,050, the S&P500 fell 4 points to close at 1,284 and the NASDAQ rose 18 points to close at 2,687.
European stocks were weaker: London’s FTSE down 99 points, Paris fell 84 and Frankfurt also dropped 129 points.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was down 101, Tokyo’s Nikkei fell 33 points and China’s Shanghai Composite was up 39.
The Australian share market fell on Thursday: The S&P/ASX 200 Index shed 32 points to close at 4,501. On the futures market the SPI is 1 point higher.
Currencies
The Australian Dollar at 7:35AM was buying $1.0534 US cents, 65.79 Pence Sterling, 84.85 Yen and 73.86 Euro cents.
Company news
Yesterday shares in BHP Billiton Ltd (ASX:BHP) fell 0.99 per cent to close at $42.04. BHP says the estimated cost of expanding the Worsley alumina project in Western Australia has increased by more than half. The miner says complexity and inflationary pressures are to blame for the blowout. BHP has an 86 per cent interest in the project. The project is now estimated to cost $US2.995 billion, up from $US1.9 billion forecast in May 2008. In the first six months of its 2011 financial year BHP Billiton generated a net profit of $10.5 billion.
On Thursday shares in Fortescue Metals Group Ltd (ASX:FMG) ended the day 0.66 per cent lower at $6.06. Fortescue mining billionaire Andrew Forrest has backed comments by James Packer, accusing the Prime Minister of being anti-business. Mr Forrest is in Canberra this week to lobby against the mining tax. He accused the government of looking after minority interests rather than the overall Australian economy. In the first half of the 2011 financial year Fortescue Metals generated a net profit of $309 million.
Commodities
Gold is down $32.90 to $US1,520 an ounce for the August contract on Comex, silver is down $1.74 to $35.00 for July and copper has fallen $0.05 at $4.04 a pound. Oil is down $4.39 at $91.02 a barrel for August light crude in New York.
