The Australian share market is likely to open slightly higher this morning after gains from the Dow Jones and on European markets overnight on earnings optimism. Resources stocks may get a boost from stronger commodity prices.
The Aussie market closed lower on Monday. The S&P/ASX 200 Index lost 13 points at 4,740 and the SPI200 is up 19 points.
Checking currencies at 8:30 AM the Aussie Dollar is buying 90.7 cents, 81.5 Yen, 61.39 Euro cents and 57.42 Pence Sterling.
In economic news out today: The Sequal Deloitte Reserve Mortgage survey is to be released, as well as the NAB monthly business survey for September.
To what’s making company news this morning: Shares in iron ore miner Fortsecue Metals Group (ASX:FMG) gained 3.45 per cent to $3.90 yesterday. The miner says its board has approved the $360 million development of its Christmas Creek mine in the Chichester Ranges, which it says will increase the company’s annual tonnage to approximately 55 million tonnes a year. The company also says that the development will be internally funded. During the September quarter volumes mined at Christmas Creek more than trebled to 989,000 tonnes. Fortescue says the planned ramp up of production is on track to achieve the targeted rate of 500,000 tonnes per month during the December quarter. Fortescue Metals Group posted a US$508 million profit in 2009 after losses the four years previous.
Shares in printing and distribution company PMP Ltd (ASX:PMP) declined 0.78 per cent to $0.635 yesterday. The company says it has secured a contract with Telstra’s Sensis division to print the Yellow Pages and White Pages Directories and advertising business. The company says the seven year agreement is worth an estimated $50 million in revenue in the first year. PMP says it will invest in a specialist directories printing facility at Chullora, NSW to fulfill the contract. PMP posted a loss in 2009 compared to profits the four years preceding.
To the ex-dividend scoreboard: and there is just one company going ex-dividend today and that is Industrea with a one cent fully franked dividend. Coming up we have SP Telemedia on Thursday and Sigma Pharmaceuticals on Friday.
To the international scoreboard: To Wall Street. The Dow Jones industrial average rose 21 points. The S&P500 Index rose 5 points and the NASDAQ closed flat.
European markets were higher. London’s FTSE is up 48 points, Paris rose 46 points and Frankfurt added 71 points.
Asian markets were mixed: Hong Kong’s Hang Seng fell 200. Tokyo’s Nikkei gained 184 points and China’s SSE Composite lost 17.
Looking at metals: the price of Gold is up $8.90 to US$1057.50 an ounce for the December contract on Comex. Silver rose 13 cents to US$17.82 and copper gained 2 cents to US$2.86.
And the price of oil is $1.50 higher at US$73.27 a barrel for November light crude in New York.
