Sydney - Monday - October 24: (RWE Australian Business News) - Investors breathed a sigh of relief as the Dow Jones came back from the brink on Friday, although it was still down on the day and off for another week. The key barometer managed to hold losses at 66 points in contrast to the previous deficit of 133, which led some analysts to believe US equities were in for a torrid time. The more encouraging news was that the S&P 500 crept into positive territory, up 2 points with the help of Google after the company produced better-than-expected sales and earnings estimates. Google approached the $100 billion level in market value as analysts raised their price estimates on the back of the results. It was also the Nasdaqs' drivers, reflected by the composite up 14 and the 100 index 10 ahead at the close. But the Dow had to carry Caterpillar's disappointing earnings forecast. There was no important economic data to give investors direction. Traders appeared to be unperturbed by a modest rise in the oil price with December crude up 61c to $60.63 after plumbing $59.15 barrel, the second consecutive low below $60. The IPE brent price edged up 50c to $58.48. The traders have had a wary eye on the latest hurricane, Wilma, which remained a serious threat to the US coastline, although it was well away from the oil-producing regions. Futures have fallen 15 per cent since reaching a record $70.85 on August 30, the day after Hurricane Katrina made landfall. Treasuries had a great session as benchmark yields breached key technical levels and investors tested the lower boundaries of a recent range. The 10-year cash paper yield fell 4.5 points to 4.39 per cent. Gold led the precious metals higher with a rise of $6 to $467 oz on the COMEX spot month while base metals, including copper, retreated. WALL STREET ... The Dow Jones Industrial Average fell 65.88 to 10,215.22 on Friday. The Standard and Poor's 500 index edged up 1.79 to 1179.59. The Nasdaq composite rose 14.1 to 2082.21 and the 100 index gained 9.53 to 1565.12. US Treasuries bounded ahead after a run of outs. The 10-year cash paper climbed 12/32 ticks to 98 28/32, dropping the yield 4.5 points to 4.39 per cent. US DOLLAR ... bounced back against major currencies. It is trading at 115.91 yen, from around 115.31 yen previously in New York. The euro is lower at $US1.1942 against 1.12021 previously while sterling fell to $US1.7663 from 1.7744. The US dollar was up on the Swiss franc at 1.2922 against 1.2877 previously. AUSTRALIAN DOLLAR ... dropped on the greenback and is now buying US74.83c, down 34 points on Friday's close of US75.17c. On the crosses the Aussie is worth 86.72 yen (prev 86.78), 0.6266 euros (prev 0.6262) and 42.38 pence on sterling (prev 42.41). AUSTRALIAN SHAREMARKET ... is likely to remain under selling pressure today in the wake of further losses on offshore markets at week's end. However, local stocks staged a recovery of sorts on Friday when the All Ordinaries closed 19.9 points behind at 4325.2 after being down as much as 68. The ASX 200 ended off 15.8 to 4364.3. Over the week the All Ords fell 46.1 and the ASX 200 lost 41.8. Futures lost ground over the weekend with the December SPI 200 down 9 to 4351 and March 17 to 4343. There is some key economic data coming out this week, starting with the September quarter producer price indices from the Australian Bureau of Statistics. Analysts generally expect a 1.3pc rise in the PPI. The ABS will release the consumer price index for the September quarter on Wednesday (consensus for a 1.1pc rise). And merchandise imports in September are due on Friday. In the sharemarket, ANZ tomorrow will be the first major bank to announce its results for the year to September 30. Newmont Mining will release its third-quarter results on Wednesday. This week's annual meetings include Foster's and Argo today; Telstra, Paperlinx, SFE and Transurban tomorrow; Suncorp-Metway, Smorgon Steel, Baycorp Advantage and Repco on Wednesday; PBL, Amcor, Newcrest and Toll Thursday; and CBA, Adelaide Bank, Coates and Hills on Friday. Stocks to trade ex-dividend include ETrade ex 10c and AHC 2.5c today; New Hope 16c, Lycopodium 10.5c, Concept Hire 5c and Plaspak 3.75c Wednesday; Becker 1.5c on Thursday; and Alcoa 15c, McGuigan Simeon 13.25c, Aust Energy 1.25c and Platinum Capital 10c on Friday. Meanwhile, Prairie Downs Metals, formerly Investment Company of the West, will rejoin the sharemarket lists at 10am today. EUROPEAN SHAREMARKETS ... ended weaker Friday, influenced by the previous day's downturn in the US market. Investors were disappointed by Ericsson's earnings report, which failed to measure up to market expectations. In the key markets London retreated 22 points, Paris 24 and Frankfurt 26. In late trading, the Dow Jones Stoxx 600 was down 0.4% at 283.28. In London, traders were bearish following news that a key executive was suspended at United Kingdom caterer Compass. In addition, Britain's economy grew more slowly in the third quarter, though in line with expectations. Quarterly growth rose just 0.4% in the July to September period, and compares with 0.5% growth in the second quarter. Compass closed down 5.8% after the struggling UK caterer suspended a top executive as part of a previously disclosed United Nations corruption probe. Meanwhile, PartyGaming, the online poker operator, bounced back from recent losses, finishing up 10%. Third-quarter performance met forecasts, and it reiterated current-year forecasts. On the continent, the German Government said its economy was expected to expand by 1.2% in 2006, less than its previous prediction of 1.6%. It also lowered GDP growth forecasts for this year to 0.8% vs a prior prediction of 1%. Roche shares declined 1.5% in Switzerland after reports that the company has agreed in principle to license its antiflu drug Tamiflu to four generic drug makers. Ericsson, the Swedish telecom equipment maker, ended down 0.4%. Profit rose 23% in the third quarter but gross margins slipped, and that disappointed investors. Ericsson sees moderate growth next year. Also in Sweden, engineering company Saab dipped 1.1% after it reiterated its full-year outlook for lower operating margins and adjusted income than was reported in 2004. At the close London fell 22 points to 5142.10, Paris lost 24 to 4366.52 and Frankfurt dropped 25.85 to 4838.40. In other markets Amsterdam shed 32, Brussels 16, Madrid fell 14. Milan rallied 44 while Zurich ended 34 behind on the close. METALS ... were mixed on Friday. Gold rose $6 to $467.00 oz on the COMEX spot month and the December contract gained $5.90 to $469.10 oz. Silver rose 4c to $7.69 oz. October platinum bounced higher, up $11.70 to $929.80 oz. NY December copper was steady at 179.30c lb. Closing London Metal Exchange bid prices were copper at $3890, tin $6250, lead $946, zinc $1460, aluminium $1928 and nickel $11,925. Three-month official bid prices saw copper end its record run, dropping $35 to $3855 tonne, while tin retreated $100 to $6395. Lead fell $29 to $954 and zinc $52.50 to $1472. Aluminium lost $66.50 to $1928 and nickel ended $200 lower at $11,875 tonne. OIL ... settled 61c higher at $60.63 barrel on the December crude contract traded on the Mercantile Exchange after November expired yesterday. High for the session was $60.70 and low $59.15. The further out January contract rose 75c to $60.82 barrel, posting a high of $60.90 and low of $59.30. Dealers are still worried about Hurricane Wilma but weathermen say it should miss the vital oil-producing regions. On the International Petroleum Exchange in London the price of Brent oil rose 50c to $58.48 on the December contract. High was $58.55 and low $57.05. The CRB index rose 0.15 points to 322.51.
