Sydney, Oct 17, 2007 (ABN Newswire) -
Australian shares may come under pressure again today after disappointing results from some of the big US banks sent US stocks lower. However energy firms could benefit from a new record oil price just under 88 us dollars a barrel
The S&P/ASX200 fell 47 points to 6,692 and on the future's market the SPI200 is down 17.
Turning to currencies, At 8:40AM the Aussie dollar is buying 89.02 US cents, on the crosses the dollar is buying 104.13 yen, 62.79 Euro cents, and 43.81 British pence.
Shares in Wesfarmers slipped 0.99% to $42.90 yesterday ahead of todays ACCC announcement the sale of Kmart and Officeworks to Woolworths. However, Wesfamers seems to have made a significant coup in its revival plans for embattled retailer Coles Group. The conglomerate appears to have convinced former British Supermarkets executive Archie Norman to take on a part time strategic advisory role in the resurrection of the bogged Coles chain. Norman won kudos after leading a massive turnaround in the Asda supermarket chain in the 1990's before selling the stores to top US store Wal-Mart. Wesfarmers has a strong track record of delivering solid company profits.
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http://abnnewswire.net/lnk/CP3187VUShares in Santos last traded 0.72% weaker at $15.10. The gas producer has spent more than a month finalising terms in which the South Australian government will lift the shareholding cap on Santos. The deal sees Santos committed to keeping 90% off its jobs in the South Australia, a $60 million contribution to community causes over a 10 year period and a $100m compensation package if it breaks those commitments. The 15% cap was originally set in 1979 to fend off corporate raider Alan Bond and now leaves Santos vunerable to takeover itself. However the deal was seen as suppressing the share price and management now plans to pursue a number of growth projects with finance raisings. Santos has seen a surge in profits in the last two financial years on the back of the boom in resources.
To international markets, US markets ended in the red; The Dow Jones Industrials closed 72 points lower, the S&P500 shed 10 and the Nasdaq composite slipped 16 points.
European stocks dragged for a second day. London's FTSE was down 30; Paris fell 33, and Frankfurt dipped 7.
To Asia, where Hong Kong's Hang Sang lost 586; Tokyo's Nikkei was down 220; and China's SSE Composite lifted 62.
Back to the US, gold ended 20 cents cheaper at $762.00 US an ounce for the spot contract on Comex, Silver dropped 20 cents to $13.66, copper was down 5 cents to $3.64.
And finally, U.S. crude oil futures rose to a new record high up $1.48 to $87.61 for the spot contract on COMEX.
Source: Finance News Network © 2007
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