(WS) World Summary: OIL, PROFIT WARNINGS DISCOURAGE US TRADERS...

(WS) World Summary: OIL, PROFIT WARNINGS DISCOURAGE US TRADERS
RWE News
8:02:020 11/04/2005
Sydney - Monday - April 11: (RWE Australian Business News) - Oil
continued to dominate US financial markets at week's end as investors
found virtually no economic data to guide them.
A number of corporate profit warnings had a negative effect on
trading.
Wall Street's Dow settled 85 lower, the S&P 500 ended 10 down,
the Nasdaq composite lost 19 and the 100 index fell 14.
There was a shakeout in energy stocks following the fifth fall
in a row in the oil price, which saw the May contract lose another 79c
to $53.32 barrel on the New York Mercantile Exchange settlement.
It means the oil price is down almost $5 since the record high
of $58.28 oz registered on April 4.
However, even with Friday's losses all the key indices finished
in front on the week.
Weighing on sentiment was profit warnings from a number of
companies, including Borland Software whose shares dropped 18 per cent
after the company said it would incur a quarterly loss.
The latest oil selloff followed the Energy Department's report
that US inventories will be sufficient to meet increased demand by
refiners making gasoline.
In addition OPEC countries have indicated they would not like to
see oil prices much above $60 barrel because it could reduce their
influence as other alternatives are sought out.
The Organisation of Petroleum Exporting Countries have already
boosted output in an effort to lower prices that threaten economic
growth.
OPEC seems to have changed policy, allowing US stockpiles to
rise, reflected by supplies increasing for eight weeks in a row,
according to this week's Energy Department report.
The OPEC cartel is trying to ensure reasonable global
inventories coupled with spare oil capacity, hence the Saudis indicating
they will increase output from 11 million to its capacity of 15 million
barrels of oil a day if required over the next 15 years.
The upsurge in energy prices this year has trimmed global growth
forecasts.
The European Commission has blamed surging oil prices in part
for the cut its 2005 estimate.
Expansion will slow to 1.6 per cent this year, less than the 2
per cent forecast in October and down from 2 per cent in 2004.
Treasuries didn't move to form with dealers ignoring oil
fluctuations.
The 10-year cash paper yield fell a point to 4.48 per cent.
An easier US dollar allowed gold to edge up 40c to $426.90 oz on
the COMEX spot.

WALL STREET ... settled 84.98 points lower at 10,461.34 on the
Dow Jones Industrial Average on Friday. The broadly-based S&P 500
finished 9.94 lower at 1181.20. The Nasdaq composite fell 19.44 to
1999.35 and the 100 index finished down 14.11 at 1485.60. Treasuries
were erratic. The 10-year cash paper rose 2/32 ticks to 96 7/32,
trimming the yield 1 point to 4.48 per cent.

US DOLLAR ... has been easier against major currencies. The
greenback is selling at 108.29 yen, down from 108.63 at the previous
close in NY. The euro is at 1.2931 (prev 1.2857) and sterling is 1.8852
(prev 1.8700). The greenback is at 1.1977 Swiss francs (prev 1.2072).

AUSTRALIAN DOLLAR ... gained against the greenback. It is
changing hands at US77.21c, up 68 points on Friday's close. High for the
weekend was US77.36c and low was US76.48c. Crosses were mostly firmer.
The yen is at 83.60 (prev 83.21), 0.5970 euros (prev 0.5959) and 40.94
pence on sterling (prev 40.97).

AUSTRALIAN SHAREMARKET ... may come under pressure today, in the
wake of the selling on Wall St. In a flying finish to the week the All
Ordinaries rose 36.1 points to 4148.5 and the ASX 200 gained 37.7 to
4165.5. Over the week the All Ords put on 22.1 and the ASX 200 rose
27.2. However, futures turned lower on Saturday and the June SPI 200
fell 12 to 4161 and September 4 to 4177.
CommSec points out there are around a dozen key economic
indicators to be released before the Reserve Bank board meets again in
early May and five of these top-tier indicators will be released this
week. The Australian Bureau of Statistics is to release February housing
finance numbers today and consensus among economists is for a 2 per cent
rise. The National Australia Bank is expected to report on the March
business survey tomorrow. On Wednesday ABS February lending finance data
and the Westpac-Melbourne Institute April consumer sentiment survey are
due. And on Thursday the Melbourne Institute will release the April
consumer inflation expectations survey.
In the sharemarket traders will be keeping an eye on Hardman
Resources after it took legal action over a costs dispute with Woodside
Petroleum at their Mauritania offshore oil joint venture. In an
announcement on Friday night, Hardman said it was seeking to claim $US18
million ($A23.5m) in costs from the joint venture. AXA Asia Pacific and
IBA Health will hold their annual meetings on Wednesday. Among stocks to
be quoted ex-dividend today are Coles Myer ex 16.3c, Rebel Sport 5c,
Noni B 6c, Colorado Group 18c, Air New Zealand 2.5c and Mortgage Choice
3.8c. Also, Atlas Group Holdings goes ex 3.9c tomorrow; Bank of
Queensland 23c, CMI 6c and CTI Logistics 1.5c on Wednesday; Just Group
7.5c, Ludowici 12c, New Hope 2.75c and WAM Capital 6c Thursday; and
Devine 4c Friday. On the new listings front, Hastings High Yield Fund
will see its $3 units (paid to $2) open at 11am today and Alpha
Financial Products $100 notes join the market at 10am on Wednesday.

EUROPEAN SHAREMARKETS ... closed flat to modestly higher Friday,
helped by easier oil prices.
In London, the blue-chip FTSE 100 Index gained a mere 0.13 per
cent but the more broadly-based measure of mid-cap stocks, the FTSE 250
Index, added 0.35 per cent or 25.6 points to close at 7265.10. Higher
recent base metal prices helped shares of most of the mining majors to
make meaningful gains. Swiss-based Xstrata climbed 2.14 per cent to
10.49 pounds, Chilean copper miner Antofagasta advanced 1.43 per cent to
12.80 pounds and BHP Billiton added 1.04 per cent to 729.5p. Beverage
group Allied Domecq rose 0.16 per cent to 643.5p as speculation mounted
that French counterpart Pernod Ricard and US partner Fortune Brands
would jointly make a bid to acquire the firm, possibly as early as April
18. Also a subject of takeover speculation, the shares of high street
chemist chain Boots climbed 3.09 per cent to 634.5p.
On the Continent, Swiss bank Julius Baer added 0.93 per cent to
435.5 Swiss francs as news surfaced yesterday that it had sacked six
large-cap equity analysts and was shifting its focus to Swiss equity
research in a move that pundits saw as window-dressing for some sort of
bid for the company. Givaudan, the Swiss chemicals and perfumes
manufacturer, fell 2.01 per cent to 754.50 Swiss francs after reporting
that first-quarter sales had slipped 4.7 per cent to to 668.7 million
francs from the same period a year ago. According to an AFX report,
German stock exchange operator Deutsche Boerse saw its shares gain 2.96
per cent to 59.41 euros after it announced a plan to buy back shares
worth as much as 600 million euros this year. The report added that
Deutsche Boerse will raise its payout ratio "significantly" in 2006,
either through higher dividends or further share buybacks.
At the finish, London's FTSE 100 index rose 6.60 to 4983.60,
Paris's CAC 40 eased 0.08 to 4124.29 and Frankfurt's DAX gained 11.16 to
4400.68. Amsterdam rose 1, Madrid fell 7 and Zurich retreated 7.

METALS ... were mixed on Friday. Spot gold rose 40c to $426.90
oz and the June contract also gained 40c to $428.80 oz on COMEX. Silver
improved 9c to $7.165 oz on the May contract. But the active July
platinum fell $5.30 to $860.30 oz on NYMEX. New York May copper crept up
10 points to 150.75c lb. Closing three-month prices on the LME were
copper $3273, tin $8250, lead $961, zinc $1371, aluminium $1946 and
nickel $16,140 tonne.
Three-month London Metals Exchange official bid prices were
uneven. Copper fell 50c to $3291.50, lead $2.50 to $964 and zinc $7 to
$1371 while tin was steady at $8125. Nickel fell $175 to $16,000 and
aluminium ended $8 in front at $1945 tonne.

OIL ... settled 79c lower at $53.32 barrel for May crude on the
New York Mercantile Exchange Friday, its fifth successive decline. High
for the session was $53.90 and low $52.70. The Energy Department
reported US inventories would be sufficient to meet increased demand by
refiners.
The June contract ended 68c lower at $54.65 barrel while the
high was $55.15 and low $54.15. The all-time high of $58.28, struck on
Tuesday, remains. In the UK, May Brent crude oil futures fell $1.15 to
$52.89 barrel on the International Petroleum Exchange. Brent futures
reached $57.65 on April 4, the highest since trading began in 1988.

The CRB index fell 1.96 points to 304.32.
ENDS
!END