Following positive leads from Wall Street, the Australian share market looks set for a higher open this morning.
US economic news was the main factor affecting Wall Street yesterday with US markets rallying at the close on weaker than expected manufacturing data and stronger than expected housing sentiment. Manufacturing activity in New York plunged to its lowest level in August since 2009, due to steep drops in new orders and shipments. Meanwhile, data from the National Association of Home Builders showed more builders viewed market conditions as more favourable than not.
Global markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.4 per cent to close at 17,545, the S&P 500 added 0.5 per cent to close at 2,102 and the NASDAQ gained 0.9 per cent to close at 5,092.
European markets closed mixed: London’s FTSE lost 0.01 per cent, Paris gained 0.6 per cent and Frankfurt was down 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng lost 0.7 per cent, and China’s Shanghai Composite gained 0.7 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 11 points up to finish at 5,368. On the futures market the SPI is up 11 points.
Currencies
The Australian Dollar at 7:20AM was buying 73.74 US cents, 47.33 Pence Sterling, 91.73 Yen and 66.58 Euro cents.
Local economic news
Investors will be keeping a close eye on the Reserve Bank Board minutes from its last meeting, in particular with respect to any discussion surrounding the value of the Aussie dollar. The Australian Bureau of Statistics will release data on new car sales for July and ANZ and Roy Morgan will release their weekly consumer confidence read.
Company news AngloGold Ashanti Limited
(ASX:AGG) says it has beaten its operations guidance and has generated $71 million of free cash flow in the second quarter. The gold miner says it has seen another strong performance from its international gold mines and a recovery from its South African Operations. Shares in AngloGold Ashanti Limited closed down 2.78 per cent yesterday at $1.75.
Mobilarm Limited
(ASX:MBO) has announced it has withdrawn its current entitlements offer and will shortly issue a new prospectus lowering the offer to around $980,000. The company was initially hoping to raise more than $2.5 million in capital through the offer. Mobilarm says the pricing of the offer and the use of funds will be the same. Shares in Mobilarm Limited last traded at 2 cents.
Commodities
Gold has gained $4.20 to $US1,117 an ounce for the December contract on Comex.
Silver has gained 8 cents to $15.29 for September.
Copper has dropped 3 cents to $2.32 a pound.
Oil has lost 72 cents to $42.39 a barrel for September light crude in New York.
