australian stocks seen down on miners nz drops

08:47, Thursday, 7 December 2006

SYDNEY, Dec 7 (Reuters) - Australian shares are seen slipping
on Thursday, as falling base metal prices weigh down on global
miners such as BHP Billiton Ltd. and Rio Tinto Ltd.
.

Copper and aluminium ended with losses of over 2 percent on
Wednesday as the market turned its focus back to the global
economic slowdown and falling demand, analysts said.

BHP's local shares are seen starting at A$26.43 -- down 1
percent from Wednesday's close.

New Zealand shares dropped after the central bank reiterated
it may have to raise interest rates again due to stubborn
inflation pressures. It held rates at 7.25 percent as expected.
[nWEL317616].

The benchmark NZX-50 Index <.NZ50> index was down 11.8
points, or 0.3 percent, at 3,843.3. Fletcher Building Ltd.
, New Zealand's top building products maker, lost 0.2
percent to NZ$10.24, amid concerns more interest rate increases
could slow the housing market.

U.S. stocks slipped on Wednesday after a report pointing to
stronger-than-expected November jobs growth was seen reducing the
chances of a interest rate cut.

There were also concerns about the outlook for software
companies after a negative report on Oracle Corp. .

On Wednesday, Australia's benchmark S&P/ASX 200 Index <.AXJO>
rose 40.2 points, or 0.7 percent, to 5,466.7, after ending flat
on the previous two days. It set a record closing peak of 5,491.6
last month.

The December share price index (SPI) futures fell
four points to settle Wednesday at 5,451.0, still a 16-point
premium on the underlying index.

Energy stocks such as Woodside Petroleum Ltd. and
Santos Ltd. could rise after U.S. crude futures
rose further on Wednesday.