Sydney, Nov 5, 2008 AEST (ABN Newswire) - Wall Street rallied overnight as voting proceeded with investors hoping that a new President would bring relief from the global financial crisis.
The Australia share market closed marginally weaker after a 75 basis point interest rate cut by the RBA boosted the bourse back from earlier sharply lower levels. The deep cut mirrors RBA's worry about the domestic and global economic outlook. Analysts said the Australia market may have hit the bottom last week at about 3600 points, and the Democratic win in the US election will also give a positive lead to the Australia market.
The benchmark S&P/ASX200 index was down 6.4 points, or 0.15 per cent, at 4,215.1, while the broader All Ordinaries index shed 3.2 points, or 0.08 per cent, to 4,169.8.
At 0650 AEDT, the December Share Price Index futures contract on the Sydney Futures Exchange was up 103 points at 4,314.
Today the Australian dollar has opened 4.5 per cent stronger as higher commodity prices and equities raised demand for the higher-yielding currency. At 0700 AEDT, the Australian dollar was trading at $US0.6953/58, from yesterday's close of $US0.6651/55.
Oil prices soared on Tuesday as the dollar weakened against the euro and on evidence that OPEC crude exporters were cutting production as promised. New York's main contract, light sweet crude for December delivery, settled at $US70.53 a barrel, up $US6.62.
Key Economic Facts and Figures
The central bank reduced the official interest rate by 75 basis points to 5.25%, the lowest level since December 2003. The cuts came after the monthly board meeting by the RBA. Most economists predicted that the rate cut would be 50 basis points.
In economic news today, the Australian Bureau of Statistics releases building approvals data and international trade data, both for September.
The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (Australian PSI) for October is due.
M&A News
Port and rail operator Asciano(ASX:AIO) will kick off an international roadshow in Canada to convince pension funds to buy up to 50 per cent of its coal haulage business, Pacific National, for between A$800 million and A$1 billion. The company will then move on to Hong Kong and Singapore to present its wares to funds, including the Singapore Government's Temasek.
BHP(ASX:BHP) said it had received a statement of objection from the European Commission. The European Union regulators have highlighted antitrust problems with BHP Billiton's hostile bid for rival Rio Tinto(ASX:RIO) that would create the world's largest iron ore miner.
Important Corporate News
The debt-laden Allco Finance Group(ASX:AFG), has gone into the hands of receivers after failing to secure its survival in talks with its bankers. The company announced last night it has appointed Tony McGrath and Joseph Hayes of McGrathMcNicol as its voluntary administrators.
Commonwealth Bank of Australia (ASX:CBA) has become the first major bank to cut its variable home loan interest rates, after the central bank eased official rates. CBA has lowered its variable home loan interest rates by 58 basis points.
West Australian Newspapers Holdings Ltd (ASX:WAN) has posted a lift in profit for the first quarter of fiscal 2009, despite a weaker advertising market. WAN reported net profit of A$29.65 million for the three months to September 30, a 43.8 per cent jump on the prior corresponding quarter.
Building products supplier James Hardie Industries(ASX:JHX) is to suspend production at two of its plants in the United States due to the downturn in the local housing industry. The company would suspend production at its plants in Fontana, California, and Summerville, on the other side of the continent in South Carolina.
CSR Ltd(ASX:CSR) said today its first-half net profit fell 51 per cent after its building products division was hit by the weak housing market. The company said Net profit for the six months ended September 30 was A$32.9 million, down from A$67.5 million a year earlier.
1. Related Stocks - Mid Market (AEST 1230)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:AIO +7.1 1,686,989 $3,770,949 218 229ASX:BHP +5.66 7,260,389 $232,677,131 3040 3095ASX:RIO +3.72 895,895 $77,970,169 8226 8439ASX:CBA -2.27 3,326,272 $136,745,931 4040 4215ASX:WAN -.29 109,493 $735,644 652 693ASX:JHX +3.2 1,094,506 $5,593,668 504 529ASX:CSR +5.06 3,349,545 $7,442,410 219 231
2. Top 10 ASX on Turnover - Mid Market ((AEST 1230)
------------------------------------------------------Code % Change Volume Turnover Low High------------------------------------------------------ASX:QGC 217,677,235 $1,251,647,334 575 576ASX:BHP +5.56 7,263,005 $232,757,566 3040 3095ASX:CBA -2.27 3,326,813 $136,768,031 4040 4215ASX:WBC -3.54 5,463,815 $115,594,200 2130 2199ASX:ANZ +2.02 5,725,445 $109,591,257 1900 1930ASX:NAB +1.64 3,146,512 $81,308,391 2540 2622ASX:RIO +3.75 897,895 $78,135,556 8226 8439ASX:WPL +1.56 1,086,447 $51,245,365 4448 4565ASX:WDC +5.57 2,850,684 $47,017,497 1600 1683ASX:TLS +.72 11,014,166 $46,071,411 416 420
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.Liang@abnnewswire.net
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