Our local market is set to open higher after US markets returned to their highest levels of the year on Friday, due to positive comments from Federal Reserve chairman Ben Bernanke and better than expected existing home sales.
The local share market closed lower on Friday with the S&P/ASX 200 Index fell 87 points to 4,291 and on the futures market the SPI200’s is up 69 points.
Checking currencies at 8:35AM the Aussie Dollar was is 83.84 US cents, 79.28 Yen, 58.44 Euro cents and 50.74 Pence Stirling.
In economic news out today, the ABS is due to release its new motor vehicle sales data for July.
There are a number of Australian companies due to report their financial results this week, including Fairfax Media today; Foster's Group and Flight Centre on Tuesday; Lihir Gold and Westfield Group on Wednesday; Crown and Woolworths on Thursday; and Harvey Norman and Caltex Australia on Friday.
In company about this morning: Shares in Qantas (ASX:QAN) closed lower on Friday, down 4.55% to $2.52. Qantas Airways’ budget offshoot Jetstar has revived plans to extend its international reach to southern Europe in the next two years. Qantas chief executive Alan Joyce has told the Australian Financial Review that Athens, Rome and Milan might be considered as new routes following the delivery of new long-haul A330 aircraft later next year. Looking at the past five years of net profits for Qantas, 2008 was the standout year.
Shares in Duet Group (ASX:DUE) closed lower on Friday, down 5.69% to $1.58. Despite high levels of debt, Macquarie Group’s pipeline operator DUET Group plans to push ahead with investments to expand its network in the current year. Duet reported a net loss of $62.3 million compared with $51.8 million a year ago after the company wrote down the value of interest rate and foreign exchange derivatives. Duet is expected to tap into growing demand for cleaner energy sources and invest about half a billion dollars in fiscal 2011 compared with the $250 million in the last financial year. In 2008, Duet Group’s net profit was more than double what it was in 2007.
Checking ex-dividends and among those going today include Amcor with a 17 cent unfranked dividend. Telstra with a 14 cent fully franked dividend and Woodside Petroleum with a 55 cent fully franked dividend.
To the international scoreboard: US markets rallied on Friday. The Dow Jones industrial average gained 156 points, the S&P500 Index rose 19 points and the NASDAQ added 32 points.
European markets were higher: London’s FTSE added 94 points, Paris is up 110 points and Frankfurt rose 152 points.
Asian markets were mixed: Hong Kong’s Hang Seng fell 130 points. Tokyo’s Nikkei lost 145 points and the Shanghai Composite gained 49 points.
Looking at Metals: Gold jumped US$13 to US$954.70 an ounce for the December contract on Comex. For the September contract Silver is up 28 cents to US$14.16 and copper rose 14 cents to US$2.88.
And finally, oil is up 12 cents to US$72.54 a barrel for September light crude in New York.
