SYDNEY (XFN-ASIA) - Share prices are expected to open lower following a slide on Wall Street on Friday after the release of gross domestic data showing that the US economy grew at a slower-than-expected pace in the September quarter, dealers said.
The data showed the US economy grew at a 1.6 pct annual pace in the third quarter - the slowest in three years. A key inflation measure - the core PCE price index - eased to 2.0 pct from 2.7 pct.
The S&P/ASX 200 December futures contract ended its last session down 15.0 points at 5,351.0 suggesting a weak start to trading.
Dealers said China's move to raise export taxes on metals, petroleum and steel in an attempt to reduce overinvestment in resource-intensive industries may affect on the resources sector.
But rises in oil, gold and base metal prices will limit falls, they said.
Rio Tinto is expected to be supported following its announcement after the market closed here on Friday that it is increasing its return to shareholders by 3 bln usd to 7 bln.
Rinker Group will also be in focus after Mexico's Cemex launched a 1.6 bln aud takeover bid for the construction materials group after the market closed on Friday.
Rinker's board met over the weekend and advised shareholders to reject the 17.00 aud a share cash offer on the grounds that it is too low, highly conditional and opportunistic, and coming at a time when Rinker's share price has weakened because of its exposure to the slowing US housing market.
Ahead in Australia, gold miners Newcrest Mining and Lihir Gold will release production reports for the three months ended September.
Later in the week Westpac, National Australia Bank and St George Bank will release their year to September profit reports.
On Froday, the S&P/ASX 200 lost 31.2 points or 0.58 pct to close at 5,358.5, down from Thursday's record close of 5,389.7.
The All Ordinaries Index shed 30.7 points to close at 5,329.9, also falling from Thursday's record closing high of 5,360.6.
In New York, weaker economic data saw the Dow Jones Industrial Average fall 73.40 points or 0.60 pct to 12,090.26. The Dow achieved fresh record highs close in each of the previous four sessions and 13 of the previous 18 sessions.
News Corp ended down 1.36 pct while National Australia Bank' American Depositary Receipts slipped 0.82 pct.
In London, shares closed lower on Friday as the market digested the weaker-than-expected US economic data. But BHP Billiton added 0.59 pct and Rio Tinto jumped 1.36 pct.
Crude oil prices rose on Friday following news that western naval forces in the Gulf had moved to counter a possible seaborne threat to Saudi Arabia's Ras Tanura oil terminal. The December Nymex crude contract edged up 0.39 usd or 0.6 pct to settle at 60.75 usd a barrel.
Base metal prices rose, lifted by zinc, which jumped to fresh record highs in response to dwindling supplies.
The price of gold also climbed on Friday, underpinned by a higher oil price and weaker US dollar. The December benchmark Comex gold contract rose 1.20 usd to close at 601.00 usd an ounce.
(1 usd = 1.30 aud)
bruce.hextall@xfn.com
blh/mas