SYDNEY (XFN-ASIA) - Share prices are expected to open weaker following a selloff in New York on Friday after the US manufacturing sector contracted for the first time in 3-1/2 years in November, dealers said.
They said a rising Australian dollar will also weigh on exporters although higher oil and base metal prices will help limit losses in the export-oriented resources sector.
On the corporate front, focus will be on Insurance Australia Group which announced a takeover offer for UK insurer Equity Insurance Group.
ANZ's November job advertisements survey will be released along with three months to September corporate operating profits and building approvals for October.
The S&P/ASX 200 December futures contract ended its last session down 23.0 points at 5,406.0 suggesting a weak start to trading.
Dealers said interest will turn to politics with the Opposition's foreign affairs spokesman Kevin Rudd challenging Kim Beazley, the leader of the main opposition party, the Australian Labor Party , for leadership ahead of next year's general federal elections.
On Friday, the S&P/ASX 200 rose 40.2 points or 0.79 pct to close at 5,154.1. The All Ordinaries Index gained 37.5 points to end at 5,113.0.
In New York shares tumbled after the Institute for Supply Management said its index on manufacturing fell to 49.5 from 51.2 in October. Economists had been expecting 51.5. Anything under 50 indicates the manufacturing sector is contracting.
The Dow Jones Industrial Average fell 27.80 points or 0.23 pct to 12,194.13. News Corp eased 0.46 pct while National Australia Bank American Depositary Receipts fell 1.25 pct.
In London, the weak US data saw the the FTSE 100 fall 27.3 points to end at 6,021.5. BHP Billiton fell 0.73 pct while Rio Tinto eased 0.11 pct.
Crude oil prices rose again on Friday, bolstered by expectations of colder weather in the US. Despite the 7 pct rise in oil prices over the past week, investors are still concerned that OPEC oil ministers may cut production quotas at its Dec 14 meeting.
The January Nymex crude contract rose 0.30 usd to settle at 63.43 usd a barrel.
Base metal prices were generally higher in London trade on Friday, the exception being copper, losing 1.1 pct.
Gold prices eased after investors elected to lock in profits at the end of the week. The new February benchmark Comex gold contract fell 2.30 usd to close at 650.60 usd an ounce.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com
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