The Australian market looks set to open slightly weaker this morning, following lacklustre leads from Wall Street. US stocks closed sharply lower after the Federal Reserve Chairman’s outlook speech disappointed investors.
US economic news
Federal Reserve Chairman Ben Bernanke says the central bank will spare no effort to boost weak growth and lower unemployment, but offered no details of how this would be achieved.
Figures
On Thursday, the Dow Jones Industrial Average lost 119 points to close at 11,296, the S&P500 lost 13 points to close at 1,186 and the NASDAQ fell 20 points to close at 2,529.
European stocks closed higher: London’s FTSE was up 22 points, Paris gained 13 and Frankfurt rose 3.
To Asian markets, and stocks were mixed: Hong Kong’s Hang Seng fell 135, Tokyo’s Nikkei gained 30 points and China’s Shanghai Composite was down 17 points.
Yesterday, The S&P/ASX 200 Index closed 5 points higher at 4,188. On the futures market the SPI is currently 17 points weaker.
Currencies
The Australian Dollar at 7:40AM was buying $US1.0577, 66.31 Pence Sterling, 82.05 Yen and 76.23 Euro cents.
Company news
Yesterday shares in Australia and New Zealand Banking Group (ASX:ANZ) closed 0.55 per cent lower at $19.92. A study by the bank and consultant Port Jackson Partners has found that to make the most of the mining boom fuelled by urban industrialisation in emerging markets the Australian economy will need $2 trillion in investment. That’s according to a report by The Australian. The study warns politicians not to dampen the commodities boom. ANZ recorded a net profit of $2.7 billion for the half year ended 31 March 2011.
On Thursday shares in Qantas Airways Limited (ASX:QAN) fell 0.31 per cent, finishing the day at $1.59. Unions, angered over executive pay packages, are looking likely to push for a no-confidence vote at the airline’s annual general meeting in October. It could mean industrial action on the day. Unions say they have the support of 100 shareholders. Qantas has rejected the motion and says it is under no obligation to place it at the meeting. Qantas posted a net profit of $249 million for the financial year ending June 30, 2011.
Ex-dividends
14 companies are going ex-dividend today, including Academies Australasia Group, Codan, Clough, Macquarie Telecom Group, Oil Search and Runge.
Commodities
Gold is up $39.90 to $US1,857 an ounce for the December contract on Comex. Silver is up 90 cents to $42.53. Copper is up 1 cent at $4.14 a pound. Oil has fallen 29 cents to $89.05 a barrel for October light crude in New York.
