Stocks poised for soft start
June 28 (AAP ) The Australian market is poised for a flat start to the week after receiving mixed leads from offshore trading. Resource stocks may advance after gold, oil and copper rose.
On the Sydney Futures Exchange, the September share price index contract was three points lower at 4,414 points. Australian stocks ended last week firmly in the red, with the benchmark S&P/ASX200 index settled down 66.7 points, or 1.49 per cent, at 4,413 points, while the broader All Ordinaries index was 64.7 points lower, by 1.44 per cent, at 4,439.4.
US stocks closed mixed in choppy trade on Friday as investors digested a major financial reform bill and a downward revision to first-quarter economic growth.
The Dow Jones Industrial Average fell 8.99 points (0.09 per cent) to 10,143.81, extending Thursday's sharp losses.
The tech-rich Nasdaq index gained 6.06 points (0.29 per cent) to 2,223.48 and the broad-market S&P 500 index advanced 3.07 points (0.27 per cent) to 1,076.76.
The financial reform legislation forged by negotiators from the House of Representative and Senate early Friday ''sets the stage for the most sweeping regulatory overhaul of the US financial industry in decades,'' Briefing.com analysts said in a note to clients.
On the economic front, the Commerce Department revised lower its estimate of first-quarter growth in gross domestic product, a broad measure of the country's output, to 2.7 per cent.
The London FTSE 100 index lost 53.76 points, or 1.05 per cent, to close at 5,046.47 points.
BP was among the day's big losers, plunging at one point to a 14-year low after the group ramped up the costs so far of its oil spill crisis in the Gulf of Mexico to $US2.35 billion dollars ($2.7 billion).
In Germany, the DAX lost 0.73 per cent, or 44.88, to close at 6,070.60.
Oil prices leapt on Friday as the market fretted about global supply as rough weather in the Caribbean Sea threatened to develop into a hurricane in the oil-producing Gulf of Mexico.
New York's main contract, light sweet crude for August delivery, surged to $US78.86 a barrel, a gain of $US2.35 from Thursday's close.
Precious and base metals generally were higher on the Comex division of the NY Mercantile Exchange on Friday.
August gold rose $US10.30 to settle at $US1,256.20 per fine ounce. July silver rose 37.4 cents to settle at $US19.11 per fine ounce, and July copper rose nine cents to settle at $US3.0955 per pound.
"Mogi" Munkhdul Badral
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