The Australian market is set to open higher this morning, with $30 billion wiped from the value of local shares yesterday. US stocks showed good gains overnight, after a sell off a day earlier. Investors continue to keep a cautious eye on Europe’s debt crisis.
US economic news
First time jobless claims dropped to a seven month low, falling by 10,000 to 390,000 last week.
European economic news
Former European Central Bank vice president Lucas Papademos has been named Greece’s new interm prime minister.
Figures
On Thursday the Dow Jones Industrial Average gained 113 points to 11,894, the S&P500 added 11 points to close at 1,240 and the Nasdaq rose 4 points to close at 2,625.
European stocks closed mixed: London’s FTSE was down 16 points, Paris fell 10 and Frankfurt rose 38 points.
To Asian markets, stocks finished lower: Hong Kong’s Hang Seng slumped 1,051 points, Tokyo’s Nikkei fell 255 points and China’s Shanghai Composite dropped 45.
The Australian share market closed lower on Thursday. The S&P/ASX 200 Index fell 102 points to close at 4,244. On the futures market the SPI is currently 23 points higher.
Currencies
The Australian Dollar at 8:35AM is buying $US1.0155 cents, 63.72 Pence Sterling, 78.85 Yen and 74.63 Euro cents.
Company news
Yesterday shares in News Corporation (ASX:NWS) closed 1.64 per cent lower at $16.84. James Murdoch has been accused of adopting mafia style tactics – keeping a code of silence. The accusations came during his second appearance before the British Parliamentary media committee investigating the News of the World phone hacking scandal. Mr Murdoch gave evidence for almost three hours. The junior Murdoch accused two former executives of keeping him in the dark about the scandal. News Corp booked a net profit of just under $2.7 billion in the year to June 30.
Yesterday shares in Fairfax Media Limited (ASX:FXJ) closed 0.54 per cent lower at $0.925. The Fairfax family’s 170-year old association with the media empire has officially come to an end. John B. Fairfax has agreed to sell his 9.7 per cent stake. Mr Fairfax retired at the group’s AGM last year after a fifty year association, retaining the shares until now. In a statement, he said it wasn’t an easy decision. His stake is valued at $189 million. In the 2011 financial year Fairfax Media reported a net loss of $390 million.
Ex-dividends
One company is going ex-dividend today, it is Australian Pharmaceutical Industries with a $0.02 unfranked dividend. Orica is coming up on Monday.
Commodities
Gold is down $32.00 to $US1,759 an ounce for the December contract on Comex. Silver has fallen $0.255 to $34.11. Copper has dropped by just under $0.07 at $3.37 a pound. Oil is flat at $95.74 a barrel for December light crude in New York.
