The Australian share market is expected to open stronger, led by higher US and European stocks and rises in commodity prices.
Australian shares closed the session lower yesterday – dragged down by the top banks. The S&P/ASX 200 Index dropped 28 points at 4,573 and the SPI200 is up 41.
Checking currencies at 8:25 AM the Aussie Dollar is buying 87.76 cents, 78.63 Yen, 59.92 Euro cents and 55.06 Pence Sterling.
In economic news, the board of the Reserve bank of Australia holds its monthly meeting on official interest rates this afternoon.
Also due for release, the Chamber of Commerce and Industry survey of investor confidence; the Federal Chamber of Automotive Industries new vehicle sales data for September and the ABS international trade data for August.
In equities news, Myer's retail share offer opens today.
To what’s making company news this morning: Shares in Brambles (ASX:BXB) closed lower yesterday, falling 1.67% to $7.65. Brambles chief executive Mike Ihlein will be replaced with an internal candidate under a succession plan to be announced in the coming days. Mr Ihlein’s replacement is part of a strategic review of the logistic giant's CHEP pallet operations in the United States. The strongest candidates for the role are internal executives from CHEP’s Europe and Asia Pacific offices. Mr Ihlein has been under pressure over the past year after Brambles lost a key contract to a rival pallet company and was forced to lay-off staff. Brambles 2009 net profit came in at just over US$452 million.
Shares in Rio Tinto (ASX:RIO) closed lower yesterday, losing 0.59% to $56.85. Rio is selling its 80% stake in Ghana's only bauxite mine to Chinese minerals group Bosai. Rio shelved an earlier plan to develop an integrated alumina refinery, which would have been fed by the Awaso mine a result of poor local infrastructure and lower global demand for minerals. The sale will be complete by the end of the year and is subject to approval by Ghana's parliament. Rio’s 2008 net profit was close to US$3.7 billion.
To ex-dividends: David Jones is among those companies going today with a 17 cent fully franked dividend. And Premier Investments in also going with a 38 cent fully franked dividend.
To the international scoreboard: Wall Street gained overnight. The Dow Jones industrial rose 112 points; the S&P500 Index added 15 points and the NASDAQ rose 20 points.
European markets were stronger. London’s FTSE rose 36 points, Paris added 25 points and Frankfurt gained 41 points.
Asian markets were mixed: Hong Kong’s Hang Seng rose 54. Tokyo’s Nikkei fell 57 points and China’s SSE Composite was closed.
The major Metals gained: the price of Gold jumped $13.50 to US$1017.80 an ounce for the December contract on Comex. Silver rose 31 cents to US$16.54 and copper gained 5 cents to US$2.73.
And the price of oil is up 46 cents to US$70.41 a barrel for November light crude in New York.
