Having been hit with negative offshore leads, the Australian market looks set to open lower. US stocks fell sharply ahead of the impending deadline to increase nation’s debt ceiling. Debt jitters in Europe also pushed the region’s markets down, but sent the price of gold through the $US1600 mark for the first time.
Figures
On Wall St, the Dow Jones Industrial Average dropped 95 points to close at 12,385, the S&P500 lost 11 points to close at 1,305 and the NASDAQ fell 25 points to close at 2,765.
European stocks started the week lower: London’s FTSE was down 91 points, Paris down 76 and Frankfurt was down 112 points.
To Asian markets, stocks were lower: Hong Kong’s Hang Seng was down 71, Tokyo Nikkei was closed and China’s Shanghai Composite eased 3 points.
The Australian share market started the week slightly lower. The S&P/ASX 200 Index lost 2 points to close at 4,472. On the futures market the SPI is down 22 points.
Currencies
The Australian Dollar at 7:35AM was buying 1.061 US cents, 66.11 Pence Sterling, 83.88 Yen and 75.23 Euro cents.
Economic news
Due out today, the Reserve Bank of Australia’s July 5 board meeting minutes.
Company news
Yesterday shares in National Australia Bank Limited (ASX:NAB) firmed 0.47 per cent, closing at $23.51. NAB is pushing ahead with plans to overhaul its UK business through advancing negotiations to potentially buy 632 Lloyds branches. According to The Australian, the bank and other bidders have asked Lloyds to restructure the package of branches up for sale by reducing the amount of loans included in the deal. If the bank and its fellow bidders successfully secure the branches, there has been talk of NAB possibly spinning-off its existing UK assets into a joint venture and selling down its stake when market conditions improve. In the first half of its 2011 financial year, National Australia Bank recorded a net profit of $2.4 billion.
Yesterday shares in NRW Holdings Limited (ASX:NWH) slipped 0.72 per cent, closing at $2.75. NRW has been awarded two new contracts from its long term client, iron ore miner Fortescue Metals Group Limited (ASX:FMG). The civil and mining services contractor has secured a ten-month $112 million contract for work at Fortescue’s Herb Elliott Port facility and also an 18-month $80 million contract as part of a joint venture for mining at Fortescue’s expansion project , The Solomon Hub. The latest awards come less than one week after NRW scored a seven-month $70 million contract for work at Fortescue’s main line rail duplication. In the first half of its 2011 financial year, NRW Holdings posted a net profit $20.4 million.
Ex-dividends
No companies are going ex-dividend today. Coming up on Wednesday is Mirrabooka Investments.
Commodities
Gold is up $12.30 to $US1,602 an ounce for the August contract on Comex, silver is up $1.27 to $40.34 for September and copper is down $0.01 to $4.40 a pound. Oil is down $1.31 at $95.93 a barrel for August light crude in New York.
