Markets settle down after record highs

Boeing fell sharply after announcing a six-month delay for deliveries of its new Dreamliner 787 aircraft.

A softer-than-expected profit report from aluminium giant Alcoa, also prompted traders to step back.

Other companies, including oil giant Chevron, and International Paper warned of lower than expected earnings.

On the New York Stock Exchange, the Dow Jones industrial average finished down 86 points at 14,079 while the Nasdaq Composite Index closed up eight points at 2,812.

On the British share market, troubled mortgage lender Northern Rock topped the leaderboard, in a reasonably choppy session.

Northern Rock added more than 32 per cent, with funds building stakes in the bank, buoyed by new government guarantees, which have boosted hopes of a rescue package.

At the end of the trading session London's FT-100 index put on 18 points to close at 6,633.

Yesterday, the Australian share market broke more records, with stocks finishing almost one per cent higher with the All-Ordinaries Index finishing 57 points higher at 6,745.

The miners which suffered on Tuesday, rallied yesterday thanks to stronger base metals prices.

BHP Billiton surged 2.3 per cent to $45.50 and Rio Tinto gained almost one per cent to $110.11.

Overnight on the Sydney Futures Exchange the Share Price Index 200 contract is down 11 points at 6,754 with just minutes left in the session.

The 10-year bond contract is up 1.5 points at 93.8 with the implied yield of 6.2 per cent.

Shortly before 8:00am AEST the Australian dollar was being quoted at 89.82 US cents, down slightly from yesterday's local close of 89.86.

On the cross-rates, it was at 0.6348 euros, 105.31 Japanese yen, 43.96 pence sterling and against the New Zealand dollar it is at 1.176.

Gold was worth $740.90 US an ounce while the spot price of West Texas crude gained $1.07 to $81.30 US a barrel. © 2007 Australian Broadcasting Corporation