The local share market looks like it may be in for a stronger start this morning following a positive lead from Wall St overnight. A better than expected U.S. manufacturing report helped to boost U.S. stocks on Monday and fuel hopes the economy is on the path to recovery.
On Monday, the local market finished stronger with the benchmark S&P/ASX 200 Index rising 19 points to 4,263 and on the futures market the SPI200’s is up 56 points.
Checking currencies at 8:50AM the Aussie Dollar is buying 84.16 US cents, 80.18 Yen, 58.4 Euro cents and 49.7 British Pence.
In economic news today: The RBA August Board meeting and rate decision is today with analysts expecting the official cash rate to be left unchanged at 3 per cent, the Commonwealth Bank - Australian Chamber of Commerce and Industry business expectations survey is due out today, as well as the ABS retail trade data for June and the ABS house price index for the June quarter.
In company news: Shares in global miner Rio Tinto Ltd (ASX:RIO) fell 0.18 per cent to $60.29 yesterday. There are reports that the Madagascan government may take a closer look at Rio’s contract for its US$1 billion mineral sands mine after finding some technical problems with its operations. The Dow Jones Newswires reports that the new government has been undertaking a review of all mining contracts since taking power in March. Saying the government found technical problems with Rio’s mineral sands operations and believed that a recent shipment was exported by a new port that was not authorised to export. The Dow Jones Newswires says the government is undecided as to whether it will investigate this further, and is in discussions with Rio. Rio Tinto’s profits took a big tumble in 2008 from its result the year before.
Shares in base metal explorer Ivanhoe Australia Ltd (ASX:IVA) rose 0.26 per cent to $1.90 yesterday. The Australian Associated Press reports that the company believes its operations at Cloncurry in Queensland, rich in rhenium and molybdenum, have enough resource to achieve the company's goals in base metal mining. The AAP says CEO Peter Reeve told a Diggers and Dealers mining conference that the company has made great progress in defining iron oxide, copper, gold and uranium mineralisation at its Cloncurry tenements. In April the company said it’s Merlin deposit containing molybdenum and rhenium could be worth over $6 billion. Ivanhoe Australia has posted net losses in the last four years.
Checking ex-dividend scoreboard now: and Coal & Allied is going ex-dividend with a $1.60 fully franked dividend and Djerriwarrh Investments is also going ex dividend today with a 16 cent fully franked dividend.
To international markets: US markets closed higher on Monday: the Dow Jones industrial average rose 115 points. The S&P500 Index gained 15 and the NASDAQ added 30 points.
European markets were higher: London’s FTSE up 74 points, Paris gained 52 points and Frankfurt added 95 points.
Asian markets were mixed: Hong Kong’s Hang Seng rose 234 points. Tokyo’s Nikkei lost 4 points and China’s SSE Composite lifted 51 points.
Looking at Metals: Gold up US$3 to US$958.80 an ounce for the December contract on Comex. For the September contract Silver rose 31 cents to US$14.25 and copper added 12 cents at US$2.74.
And finally, oil added US$2.13 to US$71.58 a barrel for September light crude in New York.
