Australian shares are set for a soft open after weak leads from Wall Street and warnings from the European Central Bank about the failure of major banks in the euro zone. Traders are also waiting for news from Asia after the announcement of the death of North Korean leader Kim Jong-il.
Figures
The US banking stocks led Wall Street lower: The Dow Jones Industrial Average fell 100 points to close at 11,766, the S&P500 eased 14 points to close at 1,205 and the Nasdaq lost 32 points to close at 2,523.
European stocks closed mixed on Monday: London’s FTSE was down 22 points, Paris was up two points and Frankfurt was down 31 points.
To Asian markets, and stocks were lower: Hong Kong’s Hang Seng was down 215 points, Tokyo Nikkei was down 106 and China’s Shanghai Composite was down seven points.
The Australian share market started the week almost two and a half per cent lower. The S&P/ASX 200 Index lost 99 points to finish at 4,060. On the futures market the SPI is down nine points.
Currencies
The Australian Dollar at 8:40am was buying US 98.97 cents, 63.87 Pence Sterling, 77.25 Yen and 76.14 Euro cents.
Economic news
Due out today from the Reserve Bank of Australia are board meeting minutes for December, and the Commonwealth Bank’s business sales indicator figures for November.
Company news
Shares in Gloucester Coal Limited (ASX:GCL) dropped 0.57 per cent yesterday, closing at $7.03. A proposed $8 billion merger between the miner and Yancoal Australia, owned by China’s Yanzhou Coal Mining Company, may be completed by the end of the week. Media reports say the deal would take the value of coal transactions announced this year to $27 billion, and would create Australia’s largest independent coal producer. Gloucester Coal reported a net profit of $54.56 million in the six months to June.
Shares in National Australia Bank Limited (ASX:NAB) closed 1.2 per cent lower yesterday at $23.15. It’s gone to the Victorian Supreme Court to reveal the identity of industrial fund managers who have signed up for a $450 million class action lawsuit against it’s disclosure of collateralised debt obligations written off during the GFC. Fairfax reports the bank’s also asked to know what shares each manager bought and sold. National Australia Bank Limited (ASX:NAB) posted a net profit of $5.2 billion in the 2011 financial year.
Ex-dividends
No companies are going ex-dividend today, but coming tomorrow is Thorn Group and later this week, Ardent Leisure and Aurora Absolute Return Fund.
Commodities
Gold is down $1.20 to $US1,596 an ounce for the February contract on Comex. Silver is down 80 cents to $28.87 for March. Copper is down two cents at $3.31 a pound. Oil is up 35 cents at $93.88 a barrel for January light crude in New York.
