The Australian share market looks set to open higher this morning thanks to strong offshore leads with US stocks, oil and commodities prices stronger.
Wall St closed high on Tuesday as investors digested a better than expected profit result from Goldman Sachs and investigations into fraud charges laid against the company, with higher oil prices helped drive a rally in energy stocks.
Goldman Sachs posted a stronger than forecast profit of $3.5 billion on strength in the company’s investment banking business and improved trading volume.
UK regulators have launched an investigation into the alleged fraud by the company, only adding to concerns caused by US fraud charges.
The Dow Jones Industrial Average finished 25 points higher at 11,117. The S&P500 Index is up 10 points at 1,207 and the NASDAQ closed 20 points higher 2,500.
European stock markets closed higher. London’s FTSE gained 56 points, Paris also rose 56 points and Frankfurt increased 102 points.
Asian stocks were mixed on Tuesday. Hong Kong’s Hang Seng advanced 218 points, Tokyo’s Nikkei is down 8 points and China’s Shanghai Composite is steady.
Australian stocks closed higher on Tuesday. The S&P/ASX 200 Index finished 11 points stronger at 4,926, and on the futures market the SPI200 is up 44 points. On to currencies: the Aussie Dollar at 8:35AM was buying 93.13 US cents, 60.61 Pence Sterling, 86.79 Yen and 69.33 Euro cents.
In local economic news: Out today we have the Department of Education, Employment and Workplace Relations survey of skilled job vacancies for April, and the Westpac/Melbourne Institute indices of economic activity for March.
To company news around this morning: Shares in National Australia Bank Ltd (ASX:NAB) gained 2.67% to $28.83 yesterday. The bank says it does not agree with the reasons behind the Australian Competition and Consumer Commission’s decision to block its takeover of AXA Asia Pacific Holdings Ltd (ASX:AXA) and is now looking at a range of options. NAB says it believes that the ACCC’s characterisation of the relevant market is incorrect and does not agree that there is any substantial lessening of competition, including in the segment of the market that provides retail investment platforms for investors with complex investment needs. The watchdog blocked NAB’s bid for AXA on Monday night, however, revealing that it had no issues with AMP’s bid for the company. NAB says there are a range of options available to the company and these are actively being pursued. ACCC chairman Graeme Samuel has reportedly said he is willing to discuss the decision further with the bank. NAB earned $2.589 billion for the 12 months to September 30, 2009.
Shares in minerals explorer Noble Mineral Resources Ltd (ASX:NMG) last traded at $0.485. The company is to raise $60 million through a share placement and $2 million via a share purchase plan at 30 cents a share. The company says the capital raising will provide Noble with the funds necessary through the start of gold production. Noble Mineral Resources is engaged in the exploration and development of gold projects in Western Australia and Ghana. Following completion of the capital raising, Noble intends to make a bonus issue of options to those shareholders registered in mid-July to reward the loyalty of longstanding shareholders and those who have participated in the placement and share purchase plan and remain as shareholders. Noble Mineral Resources posted a loss for the 2009 financial year.
There is just one company going ex-dividend today: STW Communications with a 2 cent fully franked dividend. Coming up on Friday we have Brickworks, OM Holdings and Prime Infrastructure Group.
To commodities: The price of gold is up $3.40 to US$1,138.60 an ounce for the May contract on Comex. Silver gained 9 cents to US$17.82 and copper is 2 cents higher at US$3.51.
And the price of oil added $2 to US$83.45 a barrel for May light crude in New York.
