Sydney, Oct 16, 2007 (ABN Newswire) -
The Aussie market could ease once again today following Wall Street's lead, though record-high oil prices could underpin energy stocks.
On Monday the S&P/ASX200 settled 10 points weaker on 6,739 despite hitting an early intraday high; the drop came after investors got spooked by AGL's profit warning and by weakness among the banks; on the future's market the SPI-200 is down 43.
Turning to currencies, the Australian dollar opened lower today after hitting another 23-year high overnight; at 8:40AM the dollar is buying 89.96 US cents, on the crosses it's buying 105.65 Yen, 63.35 Euro cents, and 44.07 British pence.
The full report is available at the following video and audio links.
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http://abnnewswire.net/lnk/9YD7CKQGPCH Group is in the news this morning. Shares last traded at $1.33 before being placed on a trading halt early yesterday. The Perth-based scaffolder will accept an improved takeover offer from its British rival today, according to the Financial Review. PCH previously rejected a $230 million offer from Cape which it labeled hostile. Both companies were not willing to comment on the speculation yesterday. PCH is expected to release its target statement by the end of the week. PCH Group saw earnings drop off in 2007 after peaking the previous year.
Shares in Sigma Pharmaceuticals were up 3.15% to $1.48. The drug wholesaler is denying it will loose a chunk of revenue after speculation that Terry White Pharmacy Group will stop buying generic drugs from Sigma owned Arrow Pharmaceuticals. The Financial Review is reporting that Terry White will begin using generics supplied by Sigma rival Symbion Health. UBS says the switch could cost Sigma $20 million in revenue per year. Sigma Pharmaceuticals saw earnings soar over the past two fiscal years.
To international markets, US markets suffered a sell-off as oil prices soared and investors worried about upcoming earnings reports; The Dow Jones Industrials sank 108 points, the S&P lost 13, the Nasdaq composite shed 26 points.
European shares were weaker; London's FTSE was 86 points weaker; Paris dropped 37, and Frankfurt was down 72 points.
To Asia where major markets were all stronger, where Hong Kong's Hang Sang soared 702; Tokyo's Nikkei gained 27; and China's SSE Composite added 127.
Back to the US, gold ended $8.40 cents firmer at $762.20 US an ounce for the spot contract on Comex, Silver fell 5 cents to $13.86 and copper added 3 cents to $3.69.
And finally, oil closed on a record high for the second day in a row, it soared $2.44 to $86.13 a barrel for November light crude in New York.
Source: Finance News Network © 2007
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