Sydney, Oct 2, 2007 (ABN Newswire) -
Australian shares could hit a new record high today; financial firms such as Macquarie Bank are likely to rise on easing worries about a global credit squeeze. Firmer base metal prices could lift miners.
On Monday the benchmark S&P/ASX200 eased 4 points to finish at 6,564 after rising as much as 0.6 per cent to hit a lifetime high earlier in the session; on the future's market the SPI200 is up 74.
Turning to currencies, the Australian dollar has hit a fresh 18-peak against the US dollar; and is flirting with hitting its highest level in 23 years. At 8:45 AM the Aussie is buying 89.42 US cents, on the crosses the dollar is buying 103.48 yen, 62.83 Euro cents, and 43.79 British pence.
The full report is available at the following video and audio links.
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http://abnnewswire.net/lnk/478HX0W8Making news headlines this morning is Rams Home Loans Group. Shares were down 2.86% to 85 cents on Monday. Westpac has announced it will buy RAMS franchise distribution business for $140 million in cash. The news comes after the Financial Review reported that a top Australian bank was about to take a strategic stake in troubled mortgage lender. RAMS shares tumbled after it failed to refinance short-term debt back in August. RAMS is planning a $250 million residential-mortgage-backed securities issue to fund its business. RAMS Home Loans saw earnings drop off by almost $15 million in 2007.
Shares in Macquarie Bank were down 1.42% to $83.20. US-based Goodrich has agreed to sell its airframe heavy maintenance business, Goodrich Aviation Technical Services to Macquarie Bank. Financial terms of the deal have not yet been disclosed, with the sale expected to close in the fourth quarter. Macquarie Bank has posted steadily increasing record earnings since 2003.
The S&P/ASX top 200 company trading ex-dividend today is Futuris with a 5.5 cent fully franked dividend to be paid on the 24th of October.
To international markets, US markets ended the first day of the fourth quarter on a high after major banks detailed the fallout from the credit crunch, with investors betting the worst was over; The Dow Jones Industrials closed 192 points stronger on an all time closing high, the S&P500 was up 20 and the Nasdaq composite advanced 39 points as investors snapped up Apple and Intel.
European shares ended up after UBS shrugged of sub-prime losses; London's FTSE gained 39; Paris added 58, and Frankfurt rose 61.
To Asia, where Hong Kong's Hang Sang was up 77; Tokyo's Nikkei was up 60; and China's SSE Composite was closed.
Back to the US ?gold climbed, hitting a 28 year peak, despite a strengthening dollar. Gold closed $4.10 stronger to $754.10 US an ounce for the spot contract on Comex, Silver was down 7 cents to $13.86, copper was up 5 cent to $3.69.
And finally, oil lost $1.42 to finish at $80.24 a barrel for November light crude in New York.
Source: Finance News Network © 2007
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