The Australian share market looks set to slide this morning, reversing the gains of this week, after global stocks fell on fears Europe’s debt crisis is worsening. European and US markets dropped as Italy’s bond yields climbed, stoking concerns the country will need a bailout.
Figures
Wall Street dropped on Wednesday: The Dow Jones Industrial Average retreated 389 points to close at 11,781, the S&P500 fell 47 points to close at 1,229 and the Nasdaq lost 106 points to close at 2,622.
European stocks dropped: London’s FTSE was down 107 points, Paris was down 68 and Frankfurt was down 132 points.
To Asian markets, stocks finished higher: Hong Kong’s Hang Seng up 336 points, Tokyo Nikkei was up 100 and China’s Shanghai Composite was up 21 points.
Yesterday the Australian share market advanced 1.22 per cent: The S&P/ASX 200 Index gained 52 points to close at 4,346. On the futures market the SPI is down 115 points.
Currencies
The Australian Dollar at 8:40AM was buying $US1.016, 64 Pence Sterling, 79.11 Yen and 75 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is labour force data for October.
Company news
Yesterday shares in Fortescue Metals Group Limited (ASX:FMG) rose 1.59 per cent, closing at $5.10. Iron ore miner Fortescue believes the price of its key commodity has bottomed out after recent steep falls. CEO Nev Power told investors at the company’s AGM yesterday that Fortescue expects strong iron ore prices going forward, underpinned by a robust demand from China. Mr Power says the price of iron ore should remain above $US100 dollars for the foreseeable future. In the 2011 financial year Fortescue Metals Group recorded a net profit of $952 million.
On Wednesday shares in Orica Limited (ASX:ORI) gained 2.92 per cent, finishing at $26.40. Orica has suffered yet another chemical leak at its plant near Newcastle in New South Wales. The leak comes only three months after the explosive’s maker sparked an outcry for taking its time to inform local residents of the release of potentially cancer causing chemicals. Emergency services were yesterday called to the same plant. Orica has confirmed the release of ammonia vapour and says investigations are continuing. Earlier this week Orica reported a 3.8 per cent increase in its annual underlying profit. The company’s annual net profit dropped 51 per cent to $663 million, pulled down by the divestment of DuluxGroup Limited (ASX:DLX).
Ex-dividends
Five companies are going ex-dividend today, among them are: ANZ Banking Group with a $0.76 fully franked dividend, National Australia Bank with an $0.88 fully franked dividend and Sigma Pharmaceuticals with a $0.02 fully franked dividend. Coming up tomorrow is Australian Pharmaceutical Industries.
Commodities
Gold is down $7.60 to $US1,791 an ounce for the December contract on Comex.
Silver is down $0.792 cents to $34.36.
Copper is down $0.092 at $3.44 a pound.
Oil is down $1.06 at $95.74 a barrel for November light crude in New York.
