The local share market is likely to open higher this morning after receiving a positive lead from U.S. stocks overnight following the release of some upbeat economic news that bolstered optimism for a recovery. However resource stocks may feel the pressure from lower oil and metals prices.
The local share market closed lower on Tuesday with the S&P/ASX 200 Index fell 20 points to 4,406 and on the futures market the SPI200’s up 16 points.
Checking currencies at 8:35AM the Aussie Dollar is buying 83.51 US cents, 78.72 Yen, 58.42 Euro cents and 51.1 Pence Stirling.
In economic news: The Department of Employment and Workplace Relations survey of skilled jobs vacancies is due out today, as well as the ABS construction work for the June quarter.
Among those companies reporting earnings results today we have; Goodman Fielder, Pacific Brands, Seven Network, Transurban Group and Westfield Group.
In company news about this morning: Shares in global miner Rio Tinto (ASX:RIO) fell 0.98 per cent to $58.40 yesterday. The Mongolian Parliament has agreed to amend four of its laws, to clear the way for a final investment agreement on Rio Tinto and Ivanhoe Mines Oyu Tolgoi copper gold project. The Mongolian Government has cancelled a windfall profits tax on copper and gold which imposed a 68 per cent tax on copper sold above US$2600 per tonne and the gold price above US$500 per troy ounce on the London Metal Exchange. CEO Tom Albanese says this is an important milestone in bringing on-stream one of the finest undeveloped copper-gold projects in the world. Rio says it expects to sign a formal agreement with the government of Mongolia in the near future. Rio Tinto’s profits stumbled in 2007 before almost halving in 2008.
Shares in energy transmission business APA Group (ASX:APA) rose 5.9 per cent to $2.87 yesterday. The company has announced a 17 per cent rise in full year net profit to$79 million. Underlying profit jumped 34 per cent to $110 million, with managing director Mick McCormack saying that demand for new capacity across many of the company’s gas transmission pipelines has increased, particularly in the eastern states. Total revenue for the 12 months to June 30 rose 11 per cent to $546 million. APA declared a final dividend of 16 cents a share and says it expects to increase distributions by at least 5 per cent for 2010. APA Group’s profits have been decreasing each year for the past four years.
Checking ex-dividends, and among those companies going ex-dividend today we have Downer EDI with a 16 cent unfranked dividend, QBE Insurance Group with a 62 cent 20 per cent franked dividend, Santos with a 22 cent fully franked dividend and United Group with a 35 cent fully franked dividend.
To the international scoreboard: US markets ended higher on Tuesday. The Dow Jones industrial average gained 30 points. The S&P500 Index rose 2 points and the NASDAQ added 6 points.
European markets were also higher: London’s FTSE added 21 points, Paris is up 28 points and Frankfurt rose 37 points.
Asian markets were lower: Hong Kong’s Hang Seng fell 101 points. Tokyo’s Nikkei dropped 84 points and China’s SSE Composite lost 78 points.
Looking at Metals: Gold increased $2.30 to US$946 an ounce for the December contract on Comex. Silver is up 12 cents to US$14.35 and copper lost 6 cents to US$2.87 also for the December contract.
And finally, oil is dropped $2.32 cents to US$72.05 a barrel for October light crude in New York.
