The Australian market is set for further losses after international markets tumbled overnight in response to the Fed Reserve’s warning of “significant downside risks to the economic outlook”.
US economic news
Jobless claims dropped 9,000 to 423,000 last week, roughly in line with expectations.
Figures
On Thursday, the Dow Jones Industrial Average fell 391 points to close at 10,734, the S&P500 lost 37 points to close at 1,130 and the NASDAQ dropped 83 points to close at 2,456.
European stocks closed lower: London’s FTSE was down 247 points, Paris fell 154 and Frankfurt slumped 270.
To Asian markets, and stocks were lower: Hong Kong’s Hang Seng fell 912, Tokyo’s Nikkei lost 181 points and China’s Shanghai Composite was down 70 points.
Yesterday, The S&P/ASX 200 Index closed 107 points weaker at 3,965. On the futures market the SPI is currently down 76 points.
Currencies
The Australian Dollar at 7:30AM was buying $US0.975, falling below parity yesterday for the first time since March, 63.59 Pence Sterling, 74.4 Yen and 72.45 Euro cents.
Economic news
The Reserve Bank’s financial stability review is due out today.
Company news
Yesterday shares in Wesfarmers Limited (ASX:WES) closed 1.6 per cent lower at $30.17. Coles supermarkets chief Ian McLeod is Australia’s highest paid executive earning more than $15 million. That’s according to a report by the Australian Financial Review. Mr McLeod received an $11 million bonus for increasing earnings by more than 20 per cent. The pay puts him just ahead of Westfield Group (ASX:WDC) chairman Frank Lowy who was paid $14.9 million last year, but is yet to reveal his pay packet for this year. Wesfarmers reported a full year net profit of $1.9 billion to June 30, 2011.
On Thursday shares in Coca-Cola Amatil Limited (ASX:CCL) gained 0.51 per cent, finishing the day at $11.86. If SABMiller’s takeover of Foster's Group Limited (ASX:FGL) goes ahead, then Coca-Cola Amatil looks set to receive a payout of between $305 - $380 million for its 50 per cent share in the Pacific Beverages joint venture with SABMiller. That’s according to a report by the Australian Financial Review. In the half year to June 30 Coca-Cola Amatil reported a net profit of $153.6 million.
Ex-dividends
4 companies are going ex-dividend today, including Count Financial with a $0.04 fully franked dividend, RHG with a $0.10 fully franked dividend and Southern Cross Media with a $0.03 fully franked dividend.
Commodities
Gold is down $66.40 to $US1,741 an ounce for the December contract on Comex. Silver has fallen $3.89 to $36.58. Copper is down 28 cents at $3.49 a pound. Oil has fallen $5.41 to $80.51 a barrel for November light crude in New York.
