Sydney, Aug 28, 2007 (ABN Newswire) - Australian shares could drop today; firms with US exposure are seen leading the declines after Wall Street fell on renewed worries about the housing market and consumer spending. Investment banks could also be hurt after Goldman Sachs slashed its earnings forecast on Lehman Brothers, Bear Stearns, and Morgan Stanley.

On Monday the S&P/ASX200 finished at its highest level since the end of July, adding 97 points ending at 6,185. On the futures market the SPI200 is down 35.

Turning to currencies, the Australian dollar has run into resistance in offshore trade this morning falling from a near two-week high as investors cut holdings in risky assets. At 8:35 AM the Aussie dollar is buying 82.62 US cents, on the crosses the dollar is buying 95.51 yen, 60.58 Euro cents, and 41.12 British pence.

The full report is available at the following video and audio links.

Video Link

http://abnnewswire.net/fnnlnk/4F3WL4JJ


Audio Link

http://abnnewswire.net/lnk/121RM925


Making news headlines this morning, Babcock & Brown finished up on Monday, shares gained 3.2% to $24.16. The group's Japanese subsidiary wants to buy properties valued at $295 million over the next two months. Babcock & Brown Japan Property Management's managing director says the acquisitions would increase the company's portfolio value by 23 per cent to $1.6 billion. He said Japan's economic upswing has spread to large regional cities including Osaka where the company was increasing its exposure to office properties. The move will be funded largely by debt plus an institutional placement to raise $51.9 million. Babcock & Brown earnings soared to record heights in 2006.

Seven Network shares were up 0.68% to $11.80. Sky News is reporting that the Federal Court has heard that the Seven Network should foot the full bill for its failed C7 litigation, because it refused a formal offer to settle the dispute before the marathon court case began. The National Rugby League, along with News Limited and PBL, is seeking full costs for the whole of the proceedings. Costs are estimated to be at about $200 million. Seven Network has made a provision for about $50 million. Seven Network profits recovered in 2006 after easing the previous year.

The S&P/ASX top 200 companies trading ex-dividend today are Babcock & Brown with a 50 per cent franked dividend of 21.4 cents to be paid on the 3rd of October, Independence Group with a fully franked 12 cent dividend to be paid on the 17th of September. Mincor Resources with a 6 cent fully franked dividend to be paid on the 28th of September and Tabcorp Holdings with a 47 cent fully franked dividend to be paid on the 8th of October.

To international markets, US markets fell on more negative housing news; The Dow Jones Industrials dropped 57, the S&P500 lost 13 points, and the Nasdaq shed 15.

European markets were mixed; London's FTSE was closed for a public holiday; Paris added 21, but Frankfurt dropped 21.

Meanwhile Asian stocks were all higher; Hong Kong's Hang Sang soared 656 points; while Tokyo's Nikkei added a more conservative 52, and China's SSE Composite improved 42.

Back to the US, gold futures finished slightly lower in quiet trading on Monday after the previous session's sharp rally. Gold fell $1.30 cents to $676.20 US an ounce for the spot contract on Comex, Silver lost 17 cents to $11.92, copper managed to gain 1 cent and is trading at $3.36.

And finally, oil added 88 cents to $71.97 for October light crude in New York.

Source: Finance News Network © 2007 http://www.finnewsnetwork.com.au
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