sharemarket up in choppy trade; oil of

WS) Early World Summary: SHAREMARKET UP IN CHOPPY TRADE; OIL OF
RWE News
7:48:020 9/03/2006
Sydney - Thursday - March 9: (RWE Aust Business News) US
equities again traded erratically, starting on a downturn path but then
switching into positive territory in the last hour of business.
Investors still showed concerns about higher global interest
rates, offsetting robust company earnings and takeover talk.
Investors initially took little notice of a significant drop in
energy prices, contributing to another retreat by the CRB index which
measures commodity prices.
Energy traders were influenced by Algeria's oil minister who said
there is a consensus in OPEC to try to keep oil prices below $60 a
barrel, as the group will continue pumping oil at near-capacity levels.
Ironically the April crude contract fell $1.93 to $59.65 barrel
on the New York Mercantile Exchange.
Exxon says it plans to boost annual capital spending to nearly
$20 billion and increase oil and gas production.
OPEC President Edmund Daukoru confirmed there will be no change
to the group's 28 million barrel-per-day production ceiling as the
Organization of the Petroleum Exporting Countries works to bring prices
within consumers'comfort zone and fill supply disruptions.
The US Energy Department reports that crude stockpiles in the
world's largest energy consumer surged last week to the highest since May
1999, when the price of crude was about a quarter of its current level.
Wall Street's Dow is back in the black after a choppy session,
gaining 36 points, with the S&P 500 up 3, the Nasdaq composite up 6 and
the 100 index also adding 6.
US Treasury prices were lower with 10-year yields
near 21-month highs after a Federal Reserve official suggested the
American housing market was stabilising.
The 10 year cash paper yield edged up a point to 4.74 per cent
and the 30 year bond yield gained 2 points to 4.74 per cent.
But most traders were focused on Friday's payrolls data.
Fed Chairman Ben Bernanke is due to speak today, though he is
unlikely to address monetary policy since the topic of his speech is
community banking.
More interesting were remarks by St. Louis Federal Reserve Bank
President William Poole who suggested the US housing market was already
cooling but that the slowing was stabilising and probably would not
undermine the US expansion.
Analysts attributed the sell-off in metals to a strengthening of
the US dollar over the week, which would raise the cost of
bullion in overseas markets, expectations for more interest rate hikes in
the United States and lower crude oil prices.
Meanwhile President Bush stands by his support of a Dubai-owned
company's entry into US port operations, the White House said, as House
Republicans ignored a veto threat and moved to stop the plan.
In the market NYSE shares jumped 15% on the issue price in their
first day of trading.
Lufthansa offered to cooperate with US prosecutors investigating
possible air-cargo-industry price-fixing and collusion, which could give
the German airline immunity.
Gold took another bad hit, losing $10.20 to $542.50 oz on the
COMEX spot month while other precious metals encountered significant
losses especially platinum. Base metals also came off.
The Aussie dollar is a touch weaker at US73.34c in New York
trading.




WALL STREET ... The Dow Jones industrial average index is
currently 36.74 points higher at 11,017.59 while the S&P 500 is up 3.4 to
1279.28. The Nasdaq composite is 5.56 points higher at 2273.94 and the
100 index is ahead 5.61 points to 16661.63. Treasuries traded lower
without any economic data. The 10-year cash paper fell 3/32 ticks to 98
4/32, lifting the yield a point to 4.74 per cent. The 30 year bond yield
added 2 points to 4.73 per cent.

US DOLLAR ... has eased against major currencies. It is trading
at 117.77 yen from around 117.95 yen previously. The Euro was $US1.1929
against 1.1884 previously while sterling was $US1.7368 compared with
1.7363 previously. The US dollar is lower on the Swiss franc at 1.3079
against 1.3140 previously.



AUSTRALIAN DOLLAR ... has been weaker against the greenback and
the crosses. It is presently changing hands at US73.34c in New York.
This compared with last night's local close of US73.42c. High has been
US73.85c and low US73.27c. On the crosses the Aussie is worth 86.42 yen
(pre 86.50), 0.6149 euros (pre 0.6171) and 42.23 pence on sterling (pre
42.25).




EUROPEAN SHAREMARKETS ...finished mostly lower overnight after
again being pressured by weaker mining stocks. In key markets, London
lost 45, Frankfurt 66, Paris 23 and Zurich 33.The pan-European Dow Jones
Stoxx 600 shed 0.1% at 327.41 at mid session. Investors found little
support from Wall St which traded flat in early business after
yesterday's mixed trading with the Dow up a touch and the Nasdaq down.
In London BHP Billiton and Rio Tinto lost ground amid continued
concerns about the sustainability of commodity prices and iron ore price
negotiations. The British commercial-television broadcaster ITV said its
annual profit climbed 62% to 226 million pounds with revenue up 6% to
2.18 billion pounds. It had a weak start to 2006, with first-quarter
advertising revenue down 10%, but ITV shares advanced
On the continent defense company European Aeronautic Defence &
Space gained in reaction to a 2005 net profit rise of 39% to 1.7 billion
euros, though its quarterly profit slipped on spending to make new Airbus
planes. Also, Credit Agricole improved after the bank said that its share
of fourth-quarter net profit more than doubled to 1.01 billion euroes
from 441 million euros a year earlier. Net banking income rose 24% to
3.68 billion euros. It will lift dividend payout by 42% to 94 Euro cents
a share.
In Paris, French hotels group Accor lost 3.4% after it said that
2005 net profit jumped 43% to 333 million, euros at the low end of market
expectations.
At the close London's FTSE 100 fell 44.5 points to 5812.90, the
Paris CAC-40 lost 22.7 to 4969.51, Frankfurt dropped 65.92 to 5673.36
while Zurich shed 32.74 to 7831.52. On other markets Amsterdam fell 4,
Brussels fell 33, Madrid General shed 7, Milan down 185 and Oslo came
off 4 points.




METALS ... still sliding.. The March gold COMEX spot month
finished $10.20 lower at $542.50 oz while the April contract lost a
similar amount to $544.30 oz. March silver was mauled, dropping 25.8c to
$9.777 oz while April platinum lost a hefty $30.90 to $1010 oz in a three
day losing streak. March copper shed 1.35c to 217.25c lb in New York.

Closing LME three-month bid prices were copper at $4720 tonne,
tin $7625, lead $1175, zinc $2220, aluminium $2343 and nickel $14,675
tonne.

On the three months official bid prices, copper fell $86 to $4719
tonne, tin lost $165 to $7725 while lead fell $31 to $1159, zinc shed
$125.50 to $2190 while aluminium dropped $91 to $2309 and nickel came off
$380 to $14,525 tonne.


OIL ... is currently $1.93 lower at $59.65 barrel for April
crude traded on the New York Mercantile Exchange while the high has been
$61.25 and low $59.25 barrel. The May contract dropped $2.02 to $61.30
barrel with the high of $62.95 and low $61.00 barrel. The Brent ICE
futures market for April crude futures in London shed $1.59 to $59.58
barrel with a high of $61.42 and low $59.26 barrel.

The CRB index fell 3.69 points to 317.75.
ENDS
!END