SYDNEY (XFN-ASIA) - Share prices are expected to open slightly lower on a lack of fresh leads following thin trading in New York on Friday after Thursday's Thanksgiving Day holiday, dealers said.
They said the resources sector is likely to find support following gains in oil, gold and base metal prices while continuing merger and acquisition activity should also limit losses.
The S&P/ASX 200 December futures contract ended its last session down 10.0 points at 5,436.0, suggesting a soft start to trading.
On Friday, the S&P/ASX 200 fell 13.3 points or 0.24 pct to close at 5,453.6. The All Ordinaries Index retreated 10.2 points to end at 5,431.4.
In New York, attention turned to retailers because of the so-called 'Black Friday' shopping spree that traditionally follows Thanksgiving Day with retailers saying it was a busy one. But a steep decline in the dollar against other major currencies weighed on sentiment.
The Dow Jones Industrial Average fell 46.78 points or 0.38 pct to 12,280.17. News Corp ended down 0.09 pct while National Australia Bank's American Depositary Receipts rose 0.39 pct.
In London, shares closed weaker as gains across utilities helped counter continued dollar weakness and a rough start on Wall Street.
The FTSE 100 closed down 17.9 points at 6,122.1. BHP Billiton eased 0.10 pct and Rio Tinto lost 0.29 pct.
The US dollar fell to near 19-month lows against the euro after sentiment on the currency was dented by comments the from the deputy governor of China's central bank.
People's Bank of China deputy governor Wu Xiaoling appeared to suggest that holding the dollar as a reserve currency may not be a wise thing.
Crude oil prices rose in after-hours trade on Friday on news of a rebel attack on a Nigerian oil terminal, raising fears of a disruption to supplies. The January Nymex crude contract rose 0.66 usd to settle at 59.90 usd a barrel.
The price of nickel soared 3.4 pct to record highs in London trade on Friday in response to tight market conditions and a weaker greenback. Traders said the solid performance by nickel dragged other base metals higher with zinc gaining 1.5 pct.
The price of gold rose in after-hours trade on Friday, also gaining from a weaker US dollar. A lower greenback improves the purchasing power of non-US commodity purchasers. The December benchmark Comex gold contract rose 9.60 usd to end at 638.60 usd an ounce.
Ahead in Australia, Zinifex, Tabcorp Holdings and Macquarie Infrastructure Group hold annual general meetings.
(1 usd = 1.28 aud)
bruce.hextall@xfn.com
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