Sydney, Oct 22, 2007 (ABN Newswire) -
Australian shares are expected to fall sharply today on fresh worries that the U.S. housing slump is affecting the wider economy.
On Friday, the S&P/ASX200 was down 61 points to 6,706. On the future's market the SPI200 down 155.
Turning to currencies, at 8:50AM the Aussie dollar is buying 88.77 US cents, on the crosses, the dollar is buying 101.05 yen, 61.95 Euro cents, and 43.3 British pence.
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http://abnnewswire.net/lnk/01W4PJ44To company news, shares in AGL Energy are down 2.03 per cent to $13.05. The head of Australia's largest electricity retailer has named Michael Fraser as its new managing director. It follows a board meeting on Friday, where Paul Anthony supposedly agreed to leave. It also comes after the company cut its 2008 profit forecast last Monday to between $330-360 million down from much higher forecasts, citing increased costs and lower margins. Over the past five year's AGL's best profit result was in 2005.
Shares in Asciano Group are down 3.31 per cent to $8.77. The port and rail operator is closer to launching an offer of more than $20 billion for pallet company Brambles. The Financial Review reports the company has set up an investment-grade debt rating, believed from Moody's Investor Service, to win support from its banking syndicate. It's believed banks involved in the cash and scrip bid, were uneasy about providing loans to Asciano, if it couldn't secure its own credit rating, especially given the recent tightening in credit markets. The potential deal would mark the biggest yet for an Australian Company.
To international markets, US markets tumbled on Friday on revived worries about an economic slowdown. The Dow Jones Industrials closed 367 points lower, the S&P500 down 39 points and the Nasdaq composite also ended lower 74 points.
European stocks were weaker. London's FTSE down 82; Paris fell 27, and Frankfurt was down 37.
To Asian markets, where Hong Kong's Hang Sang gained 166; Tokyo's Nikkei was down 292; and China's SSE Composite shed 7 points.
Back to the US ? Gold was down 30 cents to $768.40 for the spot contract on Comex. Silver fell 17 cents to $13.64, Copper was up 1 cent to $3.55.
And finally, oil ended lower 87 cents to $88.60 US a barrel for November light crude in New York.
Source: Finance News Network © 2007
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