This morning, the local share market is expected to open lower again. Aussie investors will be paying close attention to the latest Australian GDP data being released today, and economists are predicting a slowdown in growth.
On Tuesday, Wall Street finished in positive territory, despite a weak jobs report on Friday. Energy shares were the strongest performer, boosted by a rise in oil prices overnight.
US economic newsUS service companies experienced their slowest rate of growth in over 6 years, according to the Institute of Supply Management. The Purchasing Managers’ Index came in at 51.4 in August, which was below expectations as economists were expecting a higher reading closer to 55.5 (which was the result in July). Regardless, a reading above 50 is a good result, as it indicates expansion.
MarketsWall Street closed higher on Tuesday: The Dow Jones gained 0.3 per cent to close at 18,538, the S&P 500 was up 0.3 per cent to close at 2,186 and the NASDAQ rose 0.5 per cent to close at 5,276.
European markets finished mixed: London’s FTSE was down 0.8%, Paris lost 0.2% and Frankfurt was up 0.1%.
Asian markets finished higher: the Nikkei gained 0.3 per cent, while the Hang Seng and Shanghai Composite both rose by 0.6 percent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 16 points down to finish at 5,414. This morning, on the futures market, the SPI is down 10 points.
CurrenciesThe Australian Dollar at 7:20AM was buying $US0.7685, 57.22 Pence, 78.44 Yen and 68.31 Euro cents.
Local economic newsThe Australian Industry Group will release August figures for its performance of construction index.
The Australian Bureau of Statistics will release June-quarter GDP figures. Economists have predicted that these results will show Australian economic growth slowed in the second quarter of this year.
Company newsThe US Masters Residential Property Fund
(ASX:URF) has completed its placement and Unit Purchase Plan, raising $102.9 million. The proceeds of this capital raising will be used to fund its investment strategy – including renovations to properties, and acquisitions of new properties. The Fund says these new Units will be allotted around 13 September. Shares in the US Masters Residential Property Fund closed 0.26 per cent lower at $1.92.
Troy Resources Ltd
(ASX:TRY) has launched an equity raising to raise around $40.7 million through an institutional placement and non-renounceable entitlement offer. The company plans to use these funds to strengthen its balance sheet, and accelerate exploration and future project development in regards to its Karouni Gold Mine in Guyana (which is a country in South America’s North Atlantic coast). Shares in Troy closed 2.33 cent higher at 44 cents.
CommoditiesGold has gained almost $28 to $US1,354 an ounce for the December contract on Comex.
Silver has gained $0.79 to $20.16 for December.
Copper is up $0.02 to $2.09 a pound for December.
Oil has risen $0.44 to $US44.88 a barrel for October light crude.
Ex-Dividends
