After a strong lead from Wall St overnight the local share market is likely to open higher this morning, a rise in Aussie interest rates yesterday helping to boost overseas markets by fueling optimism for a global economic recovery. A rise in commodity prices may also help to lift resource stocks today.
Australian shares have closed the session higher yesterday. The S&P/ASX 200 Index gained 18 points at 4,592 and the SPI200 is up 59.
Checking currencies at 8:30 AM the Aussie Dollar is buying 89.07 cents, 79.09 Yen, 60.52 Euro cents and 55.97 Pence Sterling.
In economic news: The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index for September is due out today, and the ABS releases data on housing finance for August.
To what’s making company news this morning: Shares in provider of supply chain and information management solutions Brambles Ltd (ASX:BXB) fell 2.61 per cent to $7.45 yesterday. The company has announced the appointment of Tom Gorman as CEO to replace Mike Ihlein when he retires on November 1. Mr Gorman is currently group president of CHEP EMEA. The company also launched a new customer service and quality program called ‘Better Everyday’ after an in depth review of its CHEP USA business. Brambles says a central feature of the program is the introduction of a new ‘US Premium’ pallet specification to be fast tracked over three years, to meet next generation supply chain trends. Brambles profits have been falling over the last three years after reaching a high of close to US$1.5 billion in 2006.
Shares in developer, manufacturer and distributor of sleep and respiratory medical equipment ResMed Inc (ASX:RMD) lost 2.73 per cent to $4.98 yesterday. The company has acquired France based manufacturer of a mandibular repositioning device called Narval O.R.M. Laboratories Narval. The device offers patients a solution for snoring and obstructive apnea, with ResMed saying the acquisition adds another therapy to supplement its existing positive airway pressure-based solutions, providing a broader offering for this patient group. ResMed says it plans to commercialise this device in selected European markets. ResMed’s 2009 net profit was US$146.4 million.
To the ex-dividend scoreboard: And there is only one company going ex-dividend today and that is Kresta Holdings with a one cent fully franked dividend. Coming up tomorrow we have OrotonGroup and on Friday is Felix Resources and the Seven Network.
To the international scoreboard: Wall Street gained overnight. The Dow Jones industrial average rose 132 points. The S&P500 Index added 14 points and the NASDAQ rose 35 points.
European markets were also stronger. London’s FTSE rose 114 points, Paris added 95 points and Frankfurt gained 149 points.
Asian markets were higher: Hong Kong’s Hang Seng rose 382. Tokyo’s Nikkei gained 17 points and China’s SSE Composite was closed.
Looking at metals: the price of Gold jumped $21.90 to US$1039.70 an ounce for the December contract on Comex. Silver rose 76 cents to US$17.30 and copper gained 6 cents to US$2.78.
And the price of oil is up 47 cents to US$70.88 a barrel for November light crude in New York.
