US stock markets were down heavily on Friday as investors worried about the fallout from fraud charges against Goldman Sachs and an oil spill that has reached land in Louisiana.
The Dow Jones Industrial Average fell 158.71 points (1.42 per cent) to 11,008.61 by the close.
The Nasdaq composite was down 50.73 points (2.02 per cent) to 2,461.19 and the Standard & Poor's 500 index was down 20.09 points (1.66 per cent) to 1,186.69.
Analyst said "The sentiment had gotten so bullish and the market so stretched that it's no surprise we had this selloff. I don't think it's over. I think we could see another few weeks down."
European stock markets closed weaker. Londons FTSE lost 65 points, Paris was down 24 points and Frankfurt lost 9 points.
Oil prices climbed above $US86 Friday after figures showed US economy expanded in the first quarter and on growing concern that an oil spill in the Gulf of Mexico will affect supply.
Benchmark crude for June delivery rose 98 US cents to settle at $US86.15 a barrel on the New York Mercantile Exchange.
The Australian stock market is expected to open lower, following a weak finish on Wall Street during Friday night's offshore session.
At the close of Friday night's session on the Sydney Futures Exchange, the June share price index contract was 62 points lower at 4,757 points, on a volume of 4,353 contracts.
In economics news on Monday, the Reserve Bank of Australia publishes the index of commodity prices for April. The Australian Bureau of Statistics releases the house price index for the March quarter.
To company news around this morning:
Aditya Birla Minerals Ltd (ABY) shares closed 2.26% lower on Friday to $1.08. The copper miner has reported a net profit of $61.4 million for the 12 months to March 31. The result reverses the major loss of $76 million the company posted in the previous corresponding period. The significant turnaround was made despite a 15% drop in copper concentrate production. Aditya Birlas board did not declare a dividend for the period.
Shares in ANZ Bank Ltd (ANZ) closed steady on Friday at $24.20. The bank says it has ruled out making an offer for AXA Asia Pacific, opening the door for National Australia Bank to try to rescue its blocked $13 billion bid for the wealth manager. The Australian reports that NAB is believed to have begun sounding out the corporate regulator in an attempt to get back into the bidding race. NAB is thought to be quietly trying to find common ground with the ACCC by working through its objections to the deal. ANZs net profit for the 12 months to September 30, 2009, was $2.943 billion.
GOLD up $11.90 to US$1,180.70 an ounce SILVER up 6c to US$ 18.639 an ounce COPPER down .03c at US$3.3535 a pound
How to Invest in Speculative Stocks Identify a catalyst. Think about what will bring this stock up. Perhaps it is an acquisition or a growing demand for a certain product. Examine the situation to see how likely it is that the catalyst will happen.
