The Australian share market is expected to open stronger today after financial stocks propelled Wall Street higher overnight.
The local market closed weaker yesterday with the S&P/ASX 200 Index dropped 26 points at 4,813 and the SPI200 is up 41 points.
Checking currencies at 8:35 AM the Aussie Dollar is mixed against the major currencies and is buying 92.67 US cents, 84.71 Yen, 61.68 Euro cents and 55.75 Pence Sterling.
On the economic news front: The Australian Bureau of Statistics publishes the trade price indexes for the September quarter.
The Melbourne Institute Bulletin of economic trends for October is also due for release.
In companies reporting today, Wesfarmers posts its first quarter sales and Woodside Petroleum publishes its third quarter production data.
To what’s making company news this morning:
BHP Billiton (ASX:BHP) shares fell yesterday, down 0.43% to $39.66. The world’s largest mining company, said demand for minerals is on the verge of “unprecedented growth” as China and India drive consumption. BHP Chairman Don Argus said that to support Asia’s increased demand for natural resources, the miner needs to increase its resource production. BHP yesterday reported a record first-quarter production of iron ore as steel companies resume output at mills in China, Europe and the US on signs of global economic recovery. BHP’s most recent net profit result was nearly US$6 billion.
Austar United Communications (ASX:AUN) shares closed lower yesterday, dropping 2.56% to $1.33. Austar has been forced to rein in its forecast for earnings growth this calendar year. After releasing its September quarter results yesterday, the company said that 2009 earnings would be at the lower end of the 10 to 15% forecast made in February. The result has been affected by Austar’s decision to bring forward the launch of a high-definition digital video recorder and 36 new channels from March 2010 to next month. Austar United Communications posted a $74 million loss in 2008.
To the ex-dividend scoreboard: There’s nothing going today but Austereo, Beach Petroleum, Diploma Group and Mystate are among those going ex-dividend early in the week.
To international markets: Wall Street rallied overnight. The Dow Jones industrial average gained 132 points. The S&P500 Index added 12 points and the NASDAQ rose 15 points.
European markets were weaker. London’s FTSE is down 50 points, Paris dropped 52 points and Frankfurt fell 71 points.
Asian markets were also lower: Hong Kong’s Hang Seng fell 108. Tokyo’s Nikkei lost 66 points and China’s SSE Composite is down 19.
Looking at metals: the price of Gold fell $5.90 to US$1058.60 an ounce for the December contract on Comex. Silver lost 28 cents to US$17.55 and copper fell 4 cents to US$3.00.
And the price of oil eased 18 cents to US$81.19 a barrel for December light crude in New York.
