SYDNEY (XFN-ASIA) - Share prices are expected to open modestly lower following a weak finish on Wall Street on concerns the Federal Reserve may resume raising interest rates after leaving them unchanged overnight, dealers said.
The Fed had implemented 17 quarter-percentage point rate hikes since June 2004, raising the nation's benchmark rate from 1.0 pct to 5.25 pct, where it stood after Tuesday's meeting
At home, the key focus will be Commonwealth Bank of Australia which reported its year to June earnings this morning.
It said it made a record cash net profit of 4.05 bln aud, exceeding market's consensus forecast of 3.9 bln for Australia's second largest bank.
The S&P/ASX 200 September futures contract ended its overnight session down 11.0 points at 4,977.0, suggesting a weak start to trading.
Yesterday, the S&P/ASX 200 ended up 63.0 points or 1.27 pct at 5,024.8. The All Ordinaries index climbed 55.6 points or 1.13 pct to 4,989.1.
In New York, the Dow Jones industrial Average fell 45.79 points, or 0.41 pct, to 11,173.59 after fluctuating shortly after the Fed's announcement.
News Corp added 2.18 pct while National Australia Bank's American Depositary Receipts eased 0.01 pct.
In London, shares finished lower as investors took late profits and weakness from oils and financials weighed on the market. The FTSE 100 index ended the session down 10.7 points at 5,818.1
BHP Billiton eased 0.50 pct while Rio Tinto eased 0.61 pct.
Base metals were mixed in London trade on Tuesday. The copper market continued to be supported by a workers' strike at BHP Billiton's Escondida copper mine in Chile.
Meanwhile, the December benchmark Comex gold fell 2.20 usd to setlle at 657.30 usd an ounce.
US crude oil futures fell after BP said that it was taking measures to prevent a complete shut-down of the Prudhoe Bay oilfield in Alaska.
Markets were further calmed after OPEC announced that it would be ready to make up any shortfall in supply following the Alaskan pipeline closure. The September Nymex crude contract fell 0.67 usd to close at 76.31 usd a barrel.
(1 usd = 1.32 aud)
bruce.hextall@xfn.com
blh/mas
© 2006 AFX News
