Outlook: Aus shares look to deepen losses

Market Reports

The Australian share market looks deepen losses after yesterday erasing 101 points. The falls came after a weak US jobs report at the end of last week. On Monday US markets were closed for the Labor day public holiday. European shares slumped to a two-week low amid the region’s lingering debt concerns and renewed fears of a US slowdown.

Figures

European stocks started the week sharply lower: London’s FTSE fell 189 points, Paris dropped 149 and Frankfurt retreated 292 points.

To Asian market, stocks slid: Hong Kong’s Hang Seng was down 597, Tokyo Nikkei was down 166 and China’s Shanghai Composite was down 50.
 
The Australian share market slumped 2.38 per cent on Monday: The S&P/ASX 200 Index lost 101 points to close at 4,142. On the futures market the SPI is 52 points down.
 
Currencies

The Australian Dollar at 7:30AM was buying $1.0549 US cents, 65.49 Pence Sterling, 81.12 Yen and 74.85 Euro cents.

Economic news

Due out today is the Reserve Bank of Australia’s interest rate decision at 2:30pm AEST and also Dun and Bradstreet’s business expectations survey. From the Australian Bureau of Statistics, balance of payments and international investment position data for the June quarter and housing finance data for the month of July.

Company news

Yesterday shares in Aquila Resources Limited (ASX:AQA) shed 5.12 per cent, closing at $5.75. Aquila Resources says it expects its wholly owned Washpool coking coal project in Queensland will cost $368 million to develop. The coal miner’s definitive feasibility study has revealed the technical and economic feasibility of Washpool is based on a 2.6 million tonnes per annum open cut operation with a 16-year mine life. Aquila says it remains on schedule to secure mining lease approval by March 2012.

Shares in Grange Resources Limited (ASX:GRR) started the week 3.57 per cent lower at $0.54. Magnetite iron ore pellet producer Grange Resources has inked a deal with mineral exploration company Venture Minerals Limited (ASX:VMS). Under the Memorandum of Understanding both companies will explore the potential for Grange to act as a downstream partner for Venture. This could result in Grange annually converting and distributing around 200,000 tonnes of magnetite concentrate from Venture’s northwest Tasmanian operations into iron ore pellets. Last week Grange Resources posted a first half net profit of $58 million.

Ex-dividends

Seven companies are going ex-dividend today: Forge Group, Fairfax Media, Global Construction Services, Hills Holdings, Kingsgate Consolidated, RCG Corporation, SEEK.


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