Outlook: Aus shares expected to open weaker November 23, 2010

Aussie shares are expected to start the day weaker, following news in the US of a FBI investigation into insider trading and continuing concerns about European indebtedness, with Ireland’s government overnight accepting a 95 billion euro bailout from the European Union & the IMF.

On Monday, the Dow Jones Industrial Average closed 25 points lower at 11,179. The S&P 500 Index fell 2 points to close at 1,198 and the NASDAQ closed 14 points stronger at 2,532.

European stocks were lower: London’s FTSE down 52 points, Paris is down 41 and Frankfurt down 22.

To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 82 points, Tokyo’s Nikkei was up 93 points and China’s Shanghai Composite down 4.

The Australian share market finished higher on Monday. The S&P/ASX 200 Index closed 14 points firmer to 4,644 and on the futures market the SPI200 is down 27 points.

Turning to currencies and the Aussie Dollar at 8:30AM was buying 98.9 US cents, 61.98 Pence Sterling, 82.39 Yen and 72.61 Euro cents.

In economic news: Due out today the Australian Bureau of Statistics construction work data for the September quarter.

Company news: Shares in Ten Network Holdings Ltd (ASX:TEN) closed 0.04 per cent up at $1.65 on Monday. The country’s wealthiest woman, Gina Rinehart, has become Ten’s latest shareholder. Following the lead from fellow billionaire James Packer’s share raid last month, Ms Rinehart’s company Hancock Prospecting Group has scored a 10 per cent stake in the network. The group says it was interested in making an investment towards the media business, and selected Channel 10 given its importance to the nation’s future. Ten Network Holdings rebounded to a profit of $150 million in fiscal 2010.

Yesterday shares in APN News and Media Ltd (ASX:APN) rose 0.01 per cent to close at $1.90. APN says it is on track to deliver earnings in line with market expectations, encouraged by a lift in advertising conditions. Ahead of investor presentations this week, APN has forecast earnings before interest and tax and before exceptional items of $210 million in the year. The media company says national advertising in Australia is showing strong growth and that growth is returning in New Zealand, though less consistently than in Australia. In the first six months of 2010, APN News and Media booked a net profit of $48.96 million.

Ex-dividends: No companies are going ex-dividend today, but coming up tomorrow is Customers and on Thursday, TFS Corporation.

To commodities: The price of gold is up $US5.50 to $US1358 an ounce for the December contract on Comex, silver is up $US0.28 to $27.46 and copper is down $0.082 to $3.75 a pound. The price of oil is down $0.24 to $US81.74 a barrel for December light crude in New York.

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