The local share market looks like it may be in for a stronger start this morning following gains on U.S. and European markets overnight. A rise in commodities is likely to boost resource stocks today.
Yesterday, the local share market closed weaker. The S&P/ASX 200 Index finished 14 points lower at 4,664 and on the futures market the SPI200’s up 19 points.
Checking currencies at 8:40 AM the Aussie Dollar is buying 87.34 US cents, 79.63 Yen, 59.06 Euro cents and 53.4 Pence Sterling. In economic news: The Federal Department of Employment and Workplace Relations releases its vacancy report.
In company about this morning: Shares in building products manufacturer James Hardie Industries N.V. (ASX:JHX) rose 1.49 per cent to $7.48 yesterday. The company says it has received approval from the Foreign Investment Review Board for it to move its corporate domicile from the Netherlands to Ireland. Federal Treasure Wayne Swan says he approves the corporate restructure of James Hardie subject to strict assurances by the company that this proposal will not alter its binding commitments to make future payments to the Asbestos Injuries Compensation Fund. James Hardie posted a profit in 2009 after a loss the year before.
Energy business Origin Energy Ltd (ASX:ORG) shares fell 1.6 per cent to $15.40 and shares in oil and gas explorer Australian Worldwide Exploration Ltd (ASX:AWE) gained 1.13 per cent to $2.68 yesterday. Origin and AWE say they have discovered gas from their Redback South 1 well in the onshore northern Perth Basin, Western Australia. Origin says the two companies need to conduct further tests to determine whether the discovery is commercial. The Redback South 1 prospect is part of the L11 joint venture between Origin subsidiary Origin Energy Developments with a 67 per cent interest in the venture, and Australian Worldwide Exploration with a 33 per cent interest. Origin Energy posted net profit of $6.9 billion in 2009, by far the best result in five years, and Australian Worldwide Exploration posted profit of $88.57 million in 2009.
Checking ex-dividends and while there are no companies going ex dividend today, among those coming up tomorrow we have Cabcharge Australia and Mirvac Group.
To the international scoreboard: US markets finished higher overnight. The Dow Jones industrial gained 51 points. The S&P500 Index added 7 points and the NASDAQ rose 8 points.
European markets were also higher: London’s FTSE added 8 points, Paris up 11 points and Frankfurt gained 41 points.
Asian markets were mixed: Hong Kong’s Hang Seng rose 228 points. Tokyo’s Nikkei was closed and China’s SSE Composite dropped 69 points.
Looking at Metals: Gold advanced $10.60 to US$1015.50 an ounce for the December contract on Comex. Silver rose 24 cents to US$17.12 and copper rose 6 cents to US$2.86.
And finally, oil gained $1.84 to US$71.55 a barrel for October light crude in New York.
