The Australian share market looks set for a steady open to the day after US stocks closed little changed and European stocks closed lower. At home, with no major economic news scheduled, attention will continue to remain fixed on a series of profit results due today.
US economic newsUS pending home sales rose more than expected, hitting almost a two year high. The National Association of Realtors index on pending home sales showed an increase of 2 per cent to 97 in January, reaching a high not seen since April 2010.
Figures Wall Street closed mixed on Monday: The Dow Jones Industrial Average lost 1 point to close at 12,982, the S&P500 added 2 points to close at 1,368 and the Nasdaq added 2 points to close at 2,966.
European markets finished lower: London’s FTSE lost 20 points, Paris lost 26 points and Frankfurt lost 15 points.
Asian markets finished mixed on Monday: Hong Kong’s Hang Seng lost 189 points, Tokyo Nikkei lost 13 and China’s Shanghai Composite added 7 points.
The Australian share market fell throughout the day to end 0.9 per cent down on Monday: The S&P/ASX 200 Index dropped 39 points to finish at 4,267. On the futures market the SPI is now 1 point lower.
Currencies The Australian Dollar at 8:30AM was buying $US1.0761 cents, 68.03 Pence Sterling, 86.72 Yen and 80.31 Euro cents.
Company news Shares in Goodman Fielder Limited
(ASX:GFF) rose 1.98 per cent on Monday, closing at $0.515. Speculation is mounting that Goodman Fielder is a takeover target after a share raid on the breads and spreads producer yesterday. Goodman denied the takeover talk this morning, claiming it has not received any proposals. Instead Goodman says UBS is seeking to buy a 10 per cent stake on behalf of Singapore’s Wilmar International Limited who currently has a stake of less than 5 per cent. In the first half of its 2012 financial year Goodman Fielder posted a net profit of $24.5 million.
Shares in QBE Insurance Group Limited
(ASX:QBE) dipped 0.95 per cent yesterday closing at $11.50. Ahead of releasing its full year results today, reports have emerged that QBE’s CEO Frank O'Halloran will be stepping down. Mr O'Halloran is expected to retire after 14 years with the company and it is understood he will be replaced by John Neal, the current global head of underwriting. In the first half of its 2012 financial year, QBE increased its net profit by 50 per cent to $634 million.
Ex-dividendsNine companies are going ex-dividend today:
Australian Governance Masters Index Fund
Bega Cheese
Decmil Group
ERM Power
ISS Group
Medical Developments International
Origin Energy
Pacific Star Network
Treasury Group.
Commodities Gold is down $1.50 to $US1,775 an ounce for the April contract on Comex.
Silver is up $0.186 to $35.52 for March.
Copper is up $1.75 at $3.88 a pound.
Oil is down $1.21 at $108.56 a barrel for March light crude in New York.
