Outlook: Aus shares given mixed leads

Market Reports

Mixed offshore leads are expected to see the Australian market open a little lower this morning, after Wall Street closed down in a last-minute drop.

US economy

The Federal Reserve says outstanding consumer credit rose by $6.25 billion during April, after a downwardly revised $4.82 billion rise in March, suggesting a rise in student and car loans.


The Dow Jones Industrial Average is down 19 points, closing at 12,071, the S&P500 dropped 1 point to close at 1,285 and the NASDAQ fell 1 point to close at 2,702.

European stocks closed higher yesterday: London’s FTSE up 1 point, Paris up 9 points and Frankfurt was up 19 points. 

Asian markets were mixed: Hong Kong’s Hang Seng was down 81 points, Tokyo’s Nikkei was up 63 and China’s Shang Hai composite was up 16.

The S&P/ASX 200 Index lost 3 points to close at 4,566 yesterday. The SPI is currently steady.

The Australian Dollar at 7:35AM was buying $1.0715 US cents, 65.17 Pence Sterling, 85.86 Yen and 72.95 Euro cents.

Australian economy

The Australian Bureau of Statistics (ABS) is set to release housing finance figures for April today.

Company news

Shares in White Energy Company Limited (ASX:WEC) closed 2.45 per cent lower at $1.99, yesterday. The coal technology group has signed a deal with Indonesian company PT Tri Mitra Bayany, to identify and explore coal deposits in Indonesia. The company told the ASX yesterday the mining properties being considered are likely to be suitable for upgrading its BCB technology. For the second half of last year, White Energy Company Limited (ASX:WEC) reported a loss of $18.9 million.

Yesterday shares in Telstra (ASX:TLS) closed 1.99 per cent stronger at $3.08. That was after NBN Co’s chair, Harrison Young, said the $11 billion deal between his company and Telstra on the National Broadband Network, will be completed next week. However, the deal still needs shareholders and Australian Competition and Consumer Commission approval. For the second half of last year, Telstra (ASX:TLS) reported a profit of $1.2 billion.


Rabinov Property Trust (ASX:RBV) is going ex-dividend today with an unfranked dividend of $0.02, joined by Trafalgar Corporate (ASX:TGP), with an unfranked dividend of $0.07. 


Gold is down $3.20 to $US1,544 an ounce for the August contract on Comex, silver is up $0.26 to $37.05 for July and copper is up $0.01 at $4.15 a pound. Oil is up $0.08 at $99.09 a barrel for July light crude in New York.