As Australian investors return from a long weekend, the share market is set for a weaker start to the trading week after the enthusiasm for Spain’s100 billion euro bailout faded. Despite a promising start, US markets sank more than 1 per cent overnight with the rest of the global markets closing mixed, as investors suspect the euro zone crisis is worsening and in anticipation of Greek elections being held at the end of the week.
Figures
Wall Street closed down yesterday: The Dow Jones Industrial Average lost 143 points to close at 12,411, the S&P500 lost 17 points to close at 1,309 and the Nasdaq lost 49 points to close at 2,810.
European markets closed mixed: London’s FTSE lost 3 points, Paris lost 9 and Frankfurt gained 10 points.
Asian markets closed up: Hong Kong’s Hang Seng added 451 points, Tokyo’s Nikkei added 166 and China’s Shanghai Composite added 24 points.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 45 points down to finish at 4,064. On the futures market the SPI is 45 points down.
Turning to currencies and the Australian Dollar at 7:15AM was buying $98.67 US cents, 63.75 Pence Sterling, 78.37 Yen and 79.1 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is lending finance data for April. Also out today from National Australia Bank is Business Confidence for May.
Stocks to watch
AGL Energy Limited (ASX:AGK) and American based PV manufacturer First Solar, have been awarded a $130 million grant from the federal government for one of Australia's largest solar projects. The grant was awarded under the government's solar flagship program. The project is valued at $450 million and will be built across two sites in Brocken Hill and Nyngan in NSW, scheduled to be completed by the end of 2015. Energy Minister Martin Ferguson says the AGL-Solar bid represented value-for-money, low risk and high commercial viability which would ensure Australia brought industrial-scale solar power to market. Shares in AGL closed 1.65 per cent down on Friday at $14.87.
Regional lender Bendigo and Adelaide Bank Limited (ASX:BEN) have cut its standard variable rate on home loans by 20 basis points to 6.90 per cent, making it more expensive than the big four. Bendigo says it needs to consider “its borrowers, depositors, staff, shareholders, partners and the wider community." Bendigo follows the big four and Bank of Queensland who lowered rates last week. Shares in Bendigo and Adelaide Bank closed 2.57 per cent down on Friday at $7.19.
Ex-dividends
Two companies are going ex-dividend today:
E&A Limited (ASX:EAL)
ING Private Equity Access Limited (ASX:IPE)
Commodities
Gold is up $5.50 to $US1,597 an ounce for the August contract on Comex.
Silver is up $0.145 to $28.50 for July.
Copper is up $0.06 at $3.34 a pound.
Oil is down $1.40 at US$82.70 a barrel for July light crude in New York.
