Sydney, Nov 2, 2007 (ABN Newswire) - What a difference a day makes, the Australian market could be in for a significant drop today with financial firms such as Macquarie Bank leading the declines. Wall Street plummeted after brokerages downgraded two of America's largest banks, sparking renewed credit crisis concerns. A pull-back in oil and metals prices could also weigh on resource companies.

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

Video Link

http://abnnewswire.net/fnnlnk/5SVB7ZW0


Audio Link

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Yesterday the S&P/ASX200 rose 1.1 per cent or 75 points gain to settle on an all-time closing high of 6,829. On the futures market the SPI200 is down 134.

Turning to currencies, the Australian dollar has dropped 2.3 per cent from recent peaks as a fresh bout of risk aversion grips markets; at 8:45 AM the Aussie dollar is buying 91.28 US cents, on the crosses the dollar is buying 104.53 yen, 63.28 Euro cents, and 43.9 British pence.

Making news this morning is Nufarm; shares in the pesticide maker last traded at $15.60 yesterday on reports that it rejected a $3.4 billion dollar takeover offer from China's National BlueStar company and Blackstone Group. Nufarm has since been placed on a trading halt as company directors weigh their options; the Financial Review reporting Nufarm's largest shareholder hopes to spark a bidding war for the company. Blackstone Group and National BlueStart have not commented on the speculation, while Nufarm said it expects to be able to say more before the start of trading on Monday. Nufarm posted record earnings results last fiscal year.

And the battle for Consolidated Minerals continues. Shares in the miner were up 0.21% to $4.88 on Thursday. Sky News is reporting the 'Takeovers Panel' has ruled against Pallinghurst Resources' top-up payment. ConsMin shareholders who supported that offer can now withdraw their acceptances. Pallinghurst is seeking a review of the decision. Meanwhile, Pallinghurst has accused rival suitor Palmary Enterprises of breaching Australian laws over undisclosed shareholding in the manganese miner. Consolidated Minerals returned to profitability in 2007.

The S&P/ASX top 200 company trading ex dividend today is Harvey Norman with a 6 cent 100 per cent franked dividend to be paid on the 10th of December.

To international markets, US markets plummeted after two brokerages downgraded the country's largest bank on credit fears; The Dow Jones Industrials Average plummeted 362 points, the S&P500 dropped 41 points and the NASDAQ is 64 points weaker.

European markets were weaker; London's FTSE was down 136; Paris sank 117, and Frankfurt was down 138.

To Asian markets, where Hong Kong's Hang Sang gained 140; Tokyo's Nikkei was up 133; but China's SSE Composite lost 40.

Back to the US, gold ended $1.60 weaker to $793.70 US an oz for the spot contract on Comex. Silver lost 11 cents to $14.33 and copper shed 11 cent to $3.36.

And finally, oil backpedaled $1.04 to $93.49 US a barrel for December light crude in New York.

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

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