The Australian sharemarket is expected to slump at open today, as fears of another recession in the US and worries about the European debt crisis deepen.
Figures
At the end of last week: The Dow Jones Industrial Average lost 304 points to close at 10,992, the S&P500 lost 32 points to 1,154 and the NASDAQ lost 61 points to close at 2,468.
European stocks finished lower on Friday: London’s FTSE closed 126 points weaker, Paris was down 111 and Frankfurt was down 219 points.
To Asian markets, stocks closed lower: Hong Kong’s Hang Seng closed 46 lower, Tokyo Nikkei was down 55 and China’s Shanghai Composite lost 1 point.
At the end of the last week, the Australian share market finished 0.2 per cent higher: On Friday the S&P/ASX200 Index gained 7 points, to close at 4,195. On the futures market the SPI is currently 70 points lower.
Currencies
The Australian dollar at 7:30am was buying US$1.0.426, 65.89 Pence Sterling, 80.84 Yen and 76.88 Euro cents.
Economic news
Due out today from the Bureau of Statistics are international trade in goods and services figures for July, as well as lending finance for July.
Company news
The Commonwealth Bank of Australia (ASX:CBA) last traded 0.4 per cent higher at $47.41. It has stepped up the mortgage price war among the other big banks, vowing to beat their advertised mortgage rates during September. The bank said new customers who borrow a minimum of $100,000 are eligible for the offer, as well as existing customers who take out new borrowings of more than $100,000. Commonwealth Bank of Australia (ASX:CBA) reported a net profit of $6.4 billion for the financial year to June 30.
Rio Tinto Limited (ASX:RIO) lost 0.07 per cent to close at $71.25 on Friday. The miner’s boss in Mongolia has reportedly issued a warning to the country’s politicians, who are petitioning for a tighter grip on its flagship mines. Cameron McRae said that if Mongolia breaks current commitments, investor confidence will be lost and Mongolian jobs will be on the line. In the six months to June 30, Rio Tinto Limited (ASX:RIO) reported a record profit of $7.5 billion.
Ex-dividends
Today there are 29 companies going ex-dividend, including Cash Convertors, Cardno, Clime Investment Management, Data3, Envestra and Flight Centre, GWA group, Jumbuck Entertainment, Lend Lease Group, Medusa Mining, Toll Holdings, Woolworths, Western Areas, and Wotif.com.
Commodities
Gold is up $10.50 to $US1,859 an ounce, silver is down 91 cents to $41.62, and copper is down 15 cents at $4.00 a pound for the December contract on Comex. Oil is down $1.81 at $87.24 a barrel for October light crude in New York.
