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Market Update : 
Economic Worries Drag U.S. Indexes
Author: 123jump.com Staff
123jump.com
Last Update: 10:55 AM EST December 17 2007


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U.S. stocks fell on the weakness in financial and real estate stocks and new worries that economic slow-down and rising inflation may crimp profit outlook for the companies. Three large deals failed to excite investors. Ingersoll-Rand agreed to purchase Trane for $10.1 billion, Related Cos received $1.4 billion in debt capital injection, and National Oilwell Varco agreed to purchase Grant Prideco for $7.5 billion. Asian markets closed lower and European markets are down more than 1.5%.

 
The Australian dollar was significantly lower at the close today after the U.S. dollar strengthened. The Australian dollar was trading at US$0.8609/13, down sharply from Friday''s close of US$0.8778/83.

Of the ASX 200 index shares, Resmed In led the gainers with a rise of 5.6% followed by increases in Sonic Healthcare of 1.6%, in AGL Energy Limited of 1.5%, in Singap Telecom of 1.3%, and in Coates hire Limited of 0.6%.

Of the ASX 200 index stocks, AED Oil led the decliners with a loss of 11% followed by losses in Queensland Gas of 8%, in Lihir Gold of 6.7%, in Caltex of 6%, and in Paperlinx Ltd and Valad Property of 5%.

In the banking sector Commonwealth Bank of Australia shed 1.2%, National Australia Bank fell 2.5%, Australia and New Zealand bank lost 2.4%, and Westpac dropped 2.4%.

In the energy sector, Oil Search was lower at 5.6%, Woodside Petroleum dropped 1.4% and Santos shed 4.4%. In the gold sector Newcrest Mining was down 4.8% and Lihir shed 7.2%.

The retailers across the sector traded lower, Harvey Norman shed 1.6%, Woolworths was down 0.9%, David Jones was lower at 1.7%, and Wesfarmers fell by 3.6%.

In the properties sector several stocks fell sharply after Centro lowered its profit outlook.

Goodman Group plunged 26%, Valad Property Group fell 18%, Westfield slipped 5.8% and James Hardie Industries dropped 2.3%.

Leighton Holdings Ltd., Australia''s biggest builder, fell 3.8% after borrowing $434 million to help pay for a stake in Dubai-based Al-Habtoor Engineering. The Sydney based company agreed to pay $870 million for 45% of Al- Habtoor in September.

Qantas Airways Ltd slipped 4.1% after its workers hinted on possibility of a strike next month over working conditions they claim are unsafe. A total of 500 staff may stop work if Qantas doesn''t address the complaints, Transport Workers Union spokesman Tony Sheldon was reported to have said.
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