Following a positive lead from Wall St overnight, the local share market looks like it may open higher this morning, supported by gains in resource stocks on higher oil and metals prices.
The Australian market finished lower on Monday with the S&P/ASX 200 Index dropping 103 points to 4,540. Looking at the futures market the SPI200’s up 25 points.
Checking currencies at 8:45 AM the Aussie Dollar is buying 90.34 US cents, 81.63 Yen, 61.19 Euro cents and 55.13 Pence Sterling. In economic news, today the RBA is to announce whether or not it will again lift interest rates with expectations of another 25 basis point rise in the Official Cash Rate, and the Commonwealth Bank of Australia - Chamber of Commerce industry business expectations survey is also due out today.
To what’s making company news this morning: Shares in iron ore giant Rio Tinto Ltd (ASX:RIO) lost 1.55 per cent to $62.79 yesterday. The miner says its iron ore production joint venture with BHP Billiton Ltd (ASX:BHP) is continuing on track, with both companies saying they expect to formalise the proposal by December 5. However while Rio says it is committed to the joint venture it is still leaving the door open for a last minute renegotiation of the terms of the proposal. Chief financial officer Guy Elliot told investors at a briefing yesterday that not all the details have been settled yet. According to The Australian Financial Review some shareholders would like to see Rio emerge with a 55 per cent interest in the joint venture not the proposed 50/50 split. Rio Tinto’s 2008 net profit was less than half its result in 2007.
Shares in nickel producer Minara Resources Ltd (ASX:MRE) declined 5.06 per cent to $0.84 yesterday. Responding to media speculation the company has confirmed that it is a potential bidder for BHP Billiton Ltd (ASX:BHP) Ravensthorpe mine in Western Australia. Minara says as part of its due diligence it is exploring various funding options for any potential acquisition, but says there is no certainty of the outcome of the company’s participation in the sale process. Minara Resources posted a loss of $20.9 million in 2008 after profits the four years previous.
To ex-dividends: while there are no companies going ex-dividend today, coming up tomorrow we have CSR and on Thursday ANZ is going ex-dividend.
To international markets: Wall Street closed higher on Monday - the Dow Jones gained 77 points. The S&P500 Index rose 7 points and the NASDAQ closed 4 points higher.
European markets were also higher. London’s FTSE up 60 points, Paris gained 32 points and Frankfurt added 16 points.
Asian markets finished mixed: Hong Kong’s Hang Seng dropped 133. Tokyo’s Nikkei declined 232 and Shanghai Composite rose 81.
Looking at metals: Gold is up $13.60 to US$1054 an ounce for the December contract on Comex. Silver added 19 cents to US$16.44 and copper fell 1 cent to US$2.95.
And the price of oil is $1.13 higher at US$78.13 a barrel for December light crude in New York.
