SYDNEY (XFN-ASIA) - Share prices are expected to open lower, dragged down by weak overseas leads including soft commodity prices and a drop on Wall Street after stronger-than-expected US jobs data rekindled fears of further interest rate rises, dealers said.
The S&P/ASX 200 ended its last session down 51.0 points at 5,509.0, suggesting a sell-off at the start of trading.
Dealers said the market is likely to dragged down by falls in the resources sector following Friday's sharp fall in gold and base metal prices while oil prices remain under pressure following reduced demand for heating oil in the US because of mild winter weather.
On Friday, the S&P/ASX 200 fell 12.8 points or 0.23 pct to close at 5,572.0, adding to the retreat from Tuesday's record close of 5,670.2. Over the trading week, the key index fell 97.9 points or 1.73 pct.
The broader All Ordinaries index shed 14.1 points to close at 5,549.8, also widening the gap from Tuesday's record close of 5,645.9.
In New York, the Dow Jones Industrial Average closed down 82.68 points or 0.66 pct at 12,398.01 as investors reacted to the jobs data, showing non-farm payrolls rose by 167,000 in December, above forecasts centered on an increase of around 100,000 jobs.
News Corp added 0.27 pct while National Australia Bank American Depositary Receipts lost 1.67 pct.
In London, blue chips closed the final session of the first week of 2007 lower, dragged down by Wall Street and ongoing weakness in oil heavyweights.
The FTSE 100 index closed down 66.9 points at 6,220.1.
BHP Billiton finished down 1.78 pct and Rio Tinto dropped 1.61 pct.
Crude prices ended a weeklong slide late on Friday on pre-weekend short covering.
Traders said the stronger-than-expected US employment data and news of the kidnapping of oil workers in Nigeria supported prices.
The February Nymex crude contract rose 0.72 usd to 56.31 usd a barrel.
Base metal prices were sharply lower in London trade on Friday, with a sell-off in the copper market dragging other metal prices lower. Lead fell by 4.0 pct with zinc down 4.3 pct.
The gold price slumped as speculators trimmed positions in response to a firmer US dollar on back of the US jobs data reducing chances of the Federal Reserve cutting interest rates in the near term.
The February benchmark Comex gold contract fell 19.30 usd to 606.90 usd an ounce.
Ahead in Australia, ANZ's December job advertisements survey will be released as well as November building approvals data.
(1 usd = 1.28 aud)
bruce.hextall@xfn.com