The Australian share market is likely to open stronger today following a rally on Wall St overnight after chip maker Intel gave an upbeat forecast for the second half, and the Federal Reserve improved its outlook for the economy.
Yesterday the local share market closed higher with the S&P/ASX 200 Index up 57 points to 3,925 and on the futures market the SPI200’s up 72 points.
Checking currencies at 8:35am the Aussie dollar is buying 80.16 US cents. On the cross rates the Aussie dollar is trading at 75.45 Yen, 56.89 Euro cents and 48.84 British pence.
In economic news out today: The ABS releases data on international merchandise imports for June.
In company news: Shares in global miner Rio Tinto Ltd (ASX:RIO) rose 2 per cent to $50.08 yesterday. The miner reported an eight per cent rise in iron ore production in the second quarter compared to the same period a year ago. CEO Tom Albanese says markets remained tough in the second quarter, with mined copper production down one per cent due to operational issues at its Escondida mine in Chile. Rio says its iron ore guidance for its global operations in 2009, incorporating Australia, Canada and Brazil, remain around 200 million tonnes with the recovery in Chinese steel demand expected to continue into the second half of 2009. Rio Tinto’s 2008 net profit took a massive tumble from its result in 2007.
Shares in waste management company Transpacific Industries Group Ltd (ASX:TPI) last traded at $1.42. The company has launched a comprehensive capital restructure program in an effort to reduce its $2.095 billion debt. The company is to raise $801 million through a 1.77 for 1 pro-rata renounceable entitlement offer to raise $737 million, and a $64 million placement to Hong Kong based WP X Holdings, an affiliate of U.S. based private equity firm Warburg Pincus at $1.80 a share.This represents a 50 per cent premium to the entitlement offer. Transpacific says the proceeds will be used to repay a portion of its debt facilities and close out about $40 million on interest rate swap contracts. Transpacific will reduce its total debt by at least $704 million, with no refinancing of debt required until at least September 2012. Transpacific Industries Group posted net profit of $193.2 million in 2008, its best result in five years.
To international markets: Wall Street finished stronger overnight. The Dow Jones industrial average rose 257 points. The S&P500 Index added 27 points and the NASDAQ rose 63 points.
European markets were also higher: London’s FTSE rose 109 points. Paris added 89 points and Frankfurt is up 147 points.
Asian markets were higher: Hong Kong’s Hang Seng gained 373 points. Tokyo’s Nikkei climbed 7 points and China’s SSE Composite advanced 43 points.
Looking at Metals: Gold added $16.60 cents to US$939.40 an ounce, for the August contract on Comex. For the September contract Silver rose 35 cents to US$13.21 and copper is up 9 cents to US$2.39.
And finally oil gained $2.02 cents to US$61.54 a barrel for August light crude in New York.
