The Australian share market is tipped to open lower, after a weak performance on Wall Street, investors taking their money off the table ahead of the Federal Reserve Chairman’s speech tonight.
US economic news
Weekly jobless claims surged to 417,000 last week, dampening hopes of a recovery in the jobs market.
Figures
On Thursday the Dow Jones Industrial Average closed 171 points weaker at 11,150, the S&P500 dropped 18 points to 1,159 and the NASDAQ fell 48 points to close at 2,420.
European stocks closed lower: London’s FTSE down 75 points, Paris fell 21 and Frankfurt lost 97 points.
To Asian markets, stocks closed higher: Hong Kong’s Hang Seng rose 286, Tokyo’s Nikkei rose 133 and China’s Shanghai Composite was up 74 points.
The Australian share market closed higher on Thursday: The S&P/ASX200 Index gained 45 points to close at 4,213. On the futures market the SPI is currently 49 points lower.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0433 US cents, 64.08 Pence Sterling, 80.82 Yen and 72.56 Euro cents.
Economic news
The Reserve Bank of Australia governor Glenn Stevens will give parliamentary testimony today.
Company news
Yesterday shares in Seven Group Holdings Limited (ASX:SVW) closed 6.2% higher at $8.56. The media and earthmoving equipment company has reported a 90 per cent fall in full year net profit to just over $70 million. Because of the company’s recent change in structure, Seven says it’s difficult to compare earnings to previous years. Seven declared a final dividend of 18 cents per share, fully franked.
Shares in Aristocrat Leisure Limited (ASX:ALL) gained 0.96 per cent yesterday, closing at $2.10. First half profit has fallen by almost 50 per cent. Net profit declined to just below $25 million in the six months to June 30, because of the strong Australian dollar, higher interest costs and weak global conditions. The company announced an interim dividend of 2.5 cents per share, unfranked.
Ex-dividends
Five companies are going ex-dividend today. They are, Blackmores, Cochlear, CSG, Delta SBD and Wellcom Group.
Commodities
Gold is up $5.90 to $US1,763 an ounce for the December contract on Comex. Silver is $1.58 higher at $40.74 for September. Copper is up $0.08 at $4.08 a pound. Oil has gained $0.14 at $85.30 a barrel for October light crude in New York.
