The Australian sharemarket is set for a flat start with weaker Chinese export data and concerns over fallout from a Greek default causing a retreat on US and European markets. US stocks pared losses towards the close, lifted by tech shares.
US economic news
404,000 initial unemployment claims were filed last week, down 1,000 from the prior week’s revised 405,000.
The figures
On Thursday, the Dow Jones Industrial Average fell 41 points to close at 11,478, the S&P500 fell 4 points to close at 1,204 and the NASDAQ was up 16 points to close at 2,620.
European stocks closed lower: London’s FTSE was down 38 points, Paris fell 43 and Frankfurt dropped 80.
To Asian markets, and stocks were higher: Hong Kong’s Hang Seng rose 428, Tokyo’s Nikkei gained 84 points and China’s Shanghai Composite rose 19 points.
Yesterday, the S&P/ASX 200 Index closed 40 points stronger at 4,245. On the futures market the SPI is currently down 5 points.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0193, 64.69 Pence Sterling, 78.37 Yen and 74.01 Euro cents.
Company news
Yesterday shares in Crown Limited (ASX:CWN) closed 0.63 per cent lower at $7.95. Crown’s executive chairman James Packer says he regrets missing the resources boom in China. Mr Packer said at the event organised by The Australian Financial Review that direct investment in resources was the best exposure to China’s growth, but he had not made any investments in that area. He said companies investing in mining “saw things that ... more people ... wish they had seen,” – himself included. Crown Limited reported a net profit of $336 million for the year to June 30.
On Thursday shares in Linc Energy Limited (ASX:LNC) gained 1.45 per cent, finishing the day at $2.10. The diversified energy group is close to offloading parts of its coal exploration assets in Queensland according to a report by the Australian Financial Review. Linc has announced it has completed the full purchase of 13 oil fields in the Gulf Coast region of Texas and Louisiana from ERG Resources. They have been purchased for a cost of $US236 million. Legal action between Linc and ERG has also wrapped up, as part of the deal. In the 2011 financial year Linc Energy recorded a net profit of $296 million.
Ex-dividends
1 company is going ex-dividend today, it is Australian Leaders Fund with a $0.06 fully franked dividend, on Monday we have Countplus with a $0.03 fully franked dividend.
Commodities
Gold is down $14.10 to $US1,668 an ounce for the December contract on Comex. Silver has fallen $1.12 to $31.67. Copper has lost 9 cents at $3.31 a pound. Oil has dropped $1.34 to $84.23 a barrel for November light crude in New York.
