SYDNEY (Thomson Financial) - Australian shares are expected to open lower Monday after Wall Street slipped on Friday following higher than expected inflation figures, which raised concerns about the Federal Reserve's ability to continue cutting interest rates.
US consumer prices rose by 0.8 percent in November for the biggest jump in two years, boosted by higher energy prices. Excluding food and energy, prices rose 0.3 percent, which compared to expectations for a 0.2 percent increase.
'Our futures are down, so we're looking at a very weak Monday opening,' said Stuart Smith, a private client advisor at Bell Potter Securities.
The S&P/ASX 200 December futures contract ended its overnight session down 58 points at 6,444.
On Friday, the S&P/ASX 200 closed down 17.6 points or 0.3 percent at 6,597.6 after trading between 6,556.7 and 6,645.4. The All Ordinaries finished 14.3 points or 0.2 percent lower at 6,661.1
'Technically the S&P/ASX 200 is still OK. It's still in uptrend, surprisingly enough,' Smith said.
On Wall Street, the Dow Jones industrial average fell 178.11 points or 1.32 percent to 13,339.85, while the S&P 500 dropped 20.46 points or 1.37 percent to 1,467.95. The Nasdaq composite fell 32.75 points or 1.23 percent to 2,635.74.
News Corp fell 1.4 percent.
London share prices closed higher Friday but well below the day's peak after a volatile session, as Wall Street remained weak following the jump in inflation data.
BHP Billiton fell 1.6 percent, while Rio Tinto declined 2.2 percent.
The FTSE 100 index closed 32.8 points or 0.52 percent higher at 6,397.0.
Crude oil prices fell on Friday on fears that higher inflation was creating a situation that would prevent the Federal Reserve from cutting rates. The January Nymex crude oil contract fell by 98 US cents to 91.27 dollars a barrel.
Base metal prices were generally stronger on the London Metal Exchange, the exception being zinc, which was down 2.2 percent. Nickel rose 3.3 percent and lead rose 1.2 percent on end-week bargain hunting.
The price of gold eased in response to a stronger US dollar and weaker oil price. The most-active February Comex gold price fell by 6 dollars to 798 dollars per ounce.
Ahead in Australia today, data on dwelling starts is scheduled for release.
nicholas.grove@thomson.com . ng/ng COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
US consumer prices rose by 0.8 percent in November for the biggest jump in two years, boosted by higher energy prices. Excluding food and energy, prices rose 0.3 percent, which compared to expectations for a 0.2 percent increase.
'Our futures are down, so we're looking at a very weak Monday opening,' said Stuart Smith, a private client advisor at Bell Potter Securities.
The S&P/ASX 200 December futures contract ended its overnight session down 58 points at 6,444.
On Friday, the S&P/ASX 200 closed down 17.6 points or 0.3 percent at 6,597.6 after trading between 6,556.7 and 6,645.4. The All Ordinaries finished 14.3 points or 0.2 percent lower at 6,661.1
'Technically the S&P/ASX 200 is still OK. It's still in uptrend, surprisingly enough,' Smith said.
On Wall Street, the Dow Jones industrial average fell 178.11 points or 1.32 percent to 13,339.85, while the S&P 500 dropped 20.46 points or 1.37 percent to 1,467.95. The Nasdaq composite fell 32.75 points or 1.23 percent to 2,635.74.
News Corp fell 1.4 percent.
London share prices closed higher Friday but well below the day's peak after a volatile session, as Wall Street remained weak following the jump in inflation data.
BHP Billiton fell 1.6 percent, while Rio Tinto declined 2.2 percent.
The FTSE 100 index closed 32.8 points or 0.52 percent higher at 6,397.0.
Crude oil prices fell on Friday on fears that higher inflation was creating a situation that would prevent the Federal Reserve from cutting rates. The January Nymex crude oil contract fell by 98 US cents to 91.27 dollars a barrel.
Base metal prices were generally stronger on the London Metal Exchange, the exception being zinc, which was down 2.2 percent. Nickel rose 3.3 percent and lead rose 1.2 percent on end-week bargain hunting.
The price of gold eased in response to a stronger US dollar and weaker oil price. The most-active February Comex gold price fell by 6 dollars to 798 dollars per ounce.
Ahead in Australia today, data on dwelling starts is scheduled for release.
nicholas.grove@thomson.com . ng/ng COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.