The local share market looks like it may open stronger this morning after U.S. stocks rallied overnight with the Dow Jones breaking through the 10,000 level following some better than expected earnings results and retail sales data.
The Aussie market closed higher on Wednesday. The S&P/ASX 200 Index rose 45 points at 4,831 and the SPI200 is up 49 points.
Checking currencies at 8:30 AM the Aussie Dollar is buying 91.56 US cents, 81.89 Yen, 61.33 Euro cents and 57.28 Pence Sterling.
In economic news out today: The RBA’s October Bulletin is due for release today, as well as the Melbourne Institute survey of consumer inflationary expectations for October, and the Westpac/ Melbourne Institute survey of consumer unemployment expectations for October.
To what’s making company news this morning: Shares in project development and contracting company Leighton Holdings Ltd (ASX:LEI) gained 1.08 per cent to $38.24 yesterday. The company has appointed Peter Gregg Chief Financial Officer of the company. Mr Gregg was formerly Chief Financial Officer and a member of the board of Qantas. The appointment of Mr Gregg follows the sudden and surprise resignation of current CFO Scott Charlton. Leighton Holdings also announced that it has been chosen as the preferred contractor for the $550 million upgrade to the Hills M2 motorway in North West Sydney. Leighton Holdings 2009 net profit dropped from its high the year before of $607.8 million.
Shares in discount retailer The Reject Shop Ltd (ASX:TRS) rose 1.44 per cent to $12.68 yesterday. The company says it is confident of achieving net profit after tax of between $21.4 million and $21.6 million in fiscal 2010, growth of 14 per cent on fiscal 2009. At the company’s annual general meeting Managing Director Chris Bryce says year to date comparable store sales growth is flat, but the company expects the recent trend to continue and anticipates the remainder of the half to produce comparable sales growth of around 3%, bringing the first half comparable sales growth to around 1.5%. The retailer says new stores have added additional sales above initial expectations, the company currently has 182 stores open and will finish the half with 191 stores. Mr Bryce says as a result of the improved sales trend and the strong new store performance the company is optimistic where it sits today. The Reject Shop’s profits have been gradually rising over the past four years.
To the ex-dividend scoreboard: And there is just one company going ex-dividend today and that is SP Telemedia with a one cent fully franked dividend. Coming up tomorrow we have Sigma Pharmaceuticals with a three cent fully franked dividend.
To the international scoreboard: Wall Street closed higher on Wednesday. The Dow Jones industrial average gained 145 points. The S&P500 Index added 19 points and the NASDAQ finished 32 points higher.
European markets were also stronger. London’s FTSE is up 102 points, Paris gained 81 points and Frankfurt rose 140 points.
Asian markets were mixed: Hong Kong’s Hang Seng gained 419. Tokyo’s Nikkei lost 16 points and China’s SSE Composite rose 34.
Looking at metals: the price of Gold fell $0.30 to US$1064.70 an ounce for the December contract on Comex. Silver rose 7 cents to US$17.91 and copper advanced 5 cents to US$2.84.
And the price of oil is $1.03 higher at US$75.18 a barrel for November light crude in New York.
