A negative lead from overseas and uncertainty for companies affected by the federal government’s carbon tax, after Prime Minister Julia Gillard announced the details yesterday, are expected to see the share market open lower this morning.
Figures
On Friday, The Dow Jones Industrial Average was down 62 points to close at 12,657, the S&P500 lost 9 points to close at 1,344 and the NASDAQ lost 13 points to close at 2,860.
European stocks were lower: London’s FTSE down 64 points, Paris lost 66 and Frankfurt was down 69 points.
Asian stocks were higher: Hong Kong’s Hang Seng was up 196, Tokyo’s Nikkei gained 67 points and China’s Shanghai Composite was up 4.
The Australian share market rose on Friday: The S&P/ASX 200 Index gained 49 points to close at 4,655. On the futures market the SPI is 40 points lower.
Currencies
The Australian Dollar at 7:30am was buying $1.0715 US cents, 66.87 Pence Sterling, 86.3 Yen and 75.4 Euro cents.
Economic news
The Australian Bureau of Statistics (ABS) is set to release housing finance data for May today.
Company news
Qantas Airways (ASX:QAN) is among the aviation companies with forecast profit cuts after the government revealed yesterday that the aviation fuel excise will be increased by an amount equivalent to the carbon price from next financial year. A Qantas spokeswoman said the company was disappointed the carbon price would not be phased in, and that the full price will apply immediately. With the airline facing a carbon price in three markets, it said it won’t be able to absorb costs. Shares in Qantas Airways (ASX:QAN) were steady on Friday at $2.00. For the last six months of 2010, Qantas (ASX:QAN) reported a profit of $239 million.
Santos Ltd (ASX:STO) is one of the many companies today coming out with expressions of uncertainty over how the carbon tax will have an impact on its finances. A spokesman told media that under the policy announced yesterday, Santos would face significant annual costs on LNG production, which would not be recoverable from customers. Santos Ltd (ASX:STO) shares were up 2.17 per cent to $13.64. In the 2010 calendar year Santos reported a profit of $498 million.
Ex-dividends
Norfolk Group (ASX:NFK) will be going ex-dividend today with an unfranked dividend, of $0.02. Joining it will be TTA Holdings (ASX:TTA) with a fully franked dividend of $0.004.
Commodities
Gold is up $13.10 to $US1,541 an ounce for the August contract on Comex, silver is up one cent to $36.54 for September and copper is down $0.03 at $4.41 a pound. Oil is down $2.47 at $96.20 a barrel for August light crude in New York.
