The Australian share market looks poised to claw out of the red this morning, having shed more than 3.5 per cent yesterday. The SPI is pointing to gains after a late rally on Wall Street pushed stocks higher. US investors were buoyed by reports that China will help the Eurozone’s debt situation and that it is in talks to buy Italy’s bonds.
Figures
On Wall Street: The Dow Jones Industrial Average gained 69 points to close at 11,061, the S&P500 added 8 points to 1,162 and the Nasdaq increased 27 points to close at 2,495.
European stocks started the week lower: London’s FTSE fell 85 points, Paris dropped 120 and Frankfurt retreated 118 points.
To Asian market, stocks fell sharply: Hong Kong’s Hang Seng was down 836, Tokyo Nikkei was down 202 and China’s Shanghai Composite was closed.
The Australian share market shed 3.7 on Monday: The S&P/ASX 200 Index lost 156 points to close at 4,039. On the futures market the SPI is 41 points higher.
Currencies
The Australian Dollar at 7:30AM was buying $1.0359 US cents, 65.32 Pence Sterling, 80.01 Yen and 75.75 Euro cents.
Economic news
Due out today is the National Australia Bank Limited’s (ASX:NAB) monthly business survey for August.
Company news
Yesterday shares in OneSteel Limited’s (ASX:OST) slipped 3.3 per cent, closing at $1.32. The CEO of steelmaker OneSteel says an urgent interest rate cut is essential to avert an economic slowdown. Geoff Plummer yesterday told the National Steel Convention that the steel industry’s ability to compete is also being stung by a strong Australian dollar. In the wake of rival BlueScope Steel Limited (ASX:BSL) last month cutting 1,000 jobs, Mr Plummer has warned that if interest rates and the dollar remain high more steel industry jobs and operations will be at risk. Last month OneSteel posted an 11 per cent fall in its fiscal 2011 net profit, coming in at $237.5 million.
Shares in Foster's Group Limited (ASX:FGL) yesterday fell 1.63 per cent, closing at $4.83. Takeover target Foster's Group has again objected to SABMiller’s $9.5 billion hostile takeover bid for Australia’s biggest brewer. Foster’s has told shareholders to take no action, claiming the $4.90 per share offer is highly conditional, subject to significant uncertainty and significantly undervalues the company. Last week Foster's welcomed a decision by regulators to reject claims, from SABMiller, that Foster’s made misleading and deceptive statements in its annual result. Foster’s Group booked a net loss of $89 million in the 2011 financial year.
Ex-dividends:
Three companies are going ex-dividend today: Chalmers, Jetset Travelworld, Magellan Financial Group.
Coming up tomorrow: Adcorp, Prime Financial Group.
Commodities
Gold is down $46.20 to $US1,813 an ounce for the December contract on Comex.
Silver is down $1.41 cents to $40.22.
Copper is down 4 cents at $3.97 a pound.
Oil is up $0.95 at $88.19 a barrel for October light crude in New York.
