SYDNEY (XFN-ASIA) - Share prices are expected to open lower, taking the market off record highs reached on Friday, as investors use the fall on Wall Street as excuse to take to the sidelines, dealers said.
They said the market will also focus on Australian interest rates as the Reserve Bank of Australia will release its quarterly statement on monetary policy at 11.30 am here.
The S&P/ASX 200 March futures contract ended its last session down 27.0 points at 5,881.0, suggesting a weak start to trading.
This morning, Fairfax Media reported a rise in first-half net profit to 142.2 mln aud from 119.9 mln in the same period a year earlier.
On Friday, share prices closed at fresh record highs as investors remained bullish following strong earnings reports and in anticipation of further positive numbers over the rest of the current reporting season.
The S&P/ASX 200 ended up 27.7 points or 0.47 pct at a record 5,927.2, closing at its high for the day.
The broader All Ordinaries index rose 26.4 points to a fresh record close of 5,899.3.
In New York on Friday, investors glumly absorbed a spike in oil prices and comments from two Federal Reserve officials that unexpected economic growth could prompt an interest rate hike.
The Dow Jones Industrial Average fell 56.80 points or 0.45 pct to 12,580.83 after also pulling back on Thursday amid concerns about the housing market.
News Corp ended down 1.42 pct while National Australia Bank's American Depositary Receipts fell 0.61 pct.
In London, shares ended higher on a raft of positive broker comments and strength in energy stocks.
The FTSE 100 closed up 36.4 points at 6,382.8. BHP Billiton gained 1.55 pct while Rio Tinto rose 0.15 pct.
Oil prices climbed briefly above 60.00 usd a barrel Friday for the first time since the first trading day of the year, as the unrelenting chill throughout the US led traders to believe that heating fuel demand won't be letting up anytime soon.
Light crude for March delivery ended up 0.18 usd at 59.89 usd a barrel on the New York Mercantile Exchange.
(1 usd = 1.29 aud)
bruce.hextall@xfn.com
blh/mas