The Australian share market looks like it may be in for a mixed start this morning following Wall St’s results overnight. The Nasdaq rose on solid results from Apple, but the Dow fell on disappointing results from banks.
On a more positive note, a Reserve Bank of Australia official says that monetary and fiscal policy in Australia is working and starting to support the economy, growth in China is also helping to lift the economy.
On Wednesday the local share market closed higher with the benchmark S&P/ASX 200 Index up 18 points at 4,069 and on the futures market the SPI200’s down 6 points.
Checking currencies at 8:30am the Aussie Dollar is buying 81.56 US cents, 76.36 Yen, 57.42 Euro cents and 49.55 British Pence.
In company news: Shares in mining giant Rio Tinto Ltd (ASX:RIO) rose 1.62 per cent to $55.81 yesterday. According to a report in the Times Online, Rio has been accused by the Government of Guinea, of defying its authority and potentially destabilising civil peace in the miners efforts to gain mining concessions. The report says a letter addressed to CEO Tom Albanese and Chairman Jan Du Plessis rebukes the company’s efforts to regain mining concessions for its Simandou iron ore mine. The Times Online says Rio expects a cost of $6 billion to develop the mine, but that the deposit has the potential to be one of the largest sources of iron ore in the world. These tensions only add to the difficulties Rio is currently facing with China following the detaining of Rio staff on suspicion of stealing state secrets. Rio Tinto’s profits took a big tumble in 2008 from the year before.
Shares in coal miner Centennial Coal Company Ltd (ASX:CEY) added 7.91 per cent to $2.73 yesterday. The company has reported a seven per cent fall in sales for the fourth quarter but says thermal export prices appear to have stabilised with continuing signs that thermal export demand remains robust. The company says its share of coal sales in the fourth quarter fell 7 per cent compared to the same period last year, to 3.3 million tonnes. Centennial says its share of saleable coal production dropped 9 per cent to 3.3 million tonnes affected by a longwall change over at its Mandalong operation. The coal miner says export sales rose to 1.24 million tonnes up from 1.18 million tonnes in the same period last year. CEO Bob Cameron says Centennial enjoyed a record quarter for export sales (in tonnage terms) as the company continues to work toward its strategy of increasing the group's exposure to market prices. Looking back at the past five years, 2008 was Centennial Coal’s stand out year posting profit of $288.6 million.
To international markets: Wall Street finished mixed on Wednesday. The Dow Jones industrial average fell 35 points. The S&P500 Index is down ½ a point and the NASDAQ added 10 points.
European markets were higher: London’s FTSE rose 13 points. Paris added 2 points and Frankfurt gained 28 points.
Asian markets mixed: Hong Kong’s Hang Seng fell 254. Tokyo’s Nikkei rose 71 and China’s SSE Composite gained 83 points.
Looking at Metals: Gold gained US$6.40 to US$953.30 an ounce, for the August contract on Comex. For the September contract Silver added 22 cents to US$13.70 and copper rose 7 cents to US$2.53.
And finally oil declined US$0.21 to US$65.40 a barrel for September light crude in New York.
