The Australian share market looks like it may be in for a weaker start this morning after Wall St’s negative finish overnight.
After an early rally US stocks slipped into the red on Monday afternoon closing lower, investors taking a step back after the market’s recent advance and optimism over China’s move to make its currency more flexible faded.
On the weekend China said it will allow the yuan to rise against the dollar, moving away from a previously pegged currency.
This is good news for US manufacturers, potentially now making imports to China less expensive. China, however, said the appreciation of its currency would be gradual.
The Dow Jones Industrial Average finished 8 points weaker at 10,422. The S&P 500 Index closed 4 points lower at 1,113 and the NASDAQ dropped 21 points to close at 2,289.
European stocks were higher; London’s FTSE is up 48 points, Paris gained 49 and Frankfurt added 76 points.
Asian markets were also stronger: Hong Kong’s Hang Seng is up 625, Tokyo’s Nikkei gained 243 points and China’s Shanghai Composite advanced 73 points.
The Australian share market finished higher on Monday with the S&P/ASX 200 Index up 61 points at 4,613 and on the futures market the SPI200’s down 30 points. Turning to currencies and the Aussie Dollar at 8:00AM was buying 87.64 US cents, 59.38 Pence Sterling, 79.78 Yen and 71.11 Euro cents.
In company news: Shares in project management and contracting company Leighton Holdings Ltd (ASX:LEI) rose 0.59% to $32.46 yesterday. The company’s subsidiary Thiess says the value of work to be completed on the M80 ring road upgrade in Victoria, has been finalised at $623 million. Thiess says the scope of work between the Calder Freeway and Sydney Road has been completed. Work on the Tulla Sydney section commenced in December 2009 and is progressing on schedule says Thiess, with the new lanes on track to open by the end of 2012. The contract also includes widening to three lanes in each direction and a fourth lane between some interchanges, installation of intelligent transport systems, and reconfiguration of freeway interchanges and ramps. Leighton Holdings net profit after tax for fiscal 2009 came to $440.04 million, down on the year before.
Shares in electricity and gas utilities investor Duet Group (ASX:DUE) gained 0.56% to $1.80 on Monday. The company has confirmed a final dividend of 10 cents a share for the second half of fiscal 2010. This takes the company’s total distributions for the year ending June 30, 2010 to 20 cents a share. Looking ahead Duet Group says it also expects to pay shareholders a 10 cent interim dividend for the fiscal 2011 December half year. Duet says guidance for the final fiscal 2011 distribution will be provided at the company’s annual general meeting in November. Duet Group fell into the red in 2009 posting a loss of $62.28 million after profits the two years previous.
Checking ex-dividends, while there are no companies going ex-dividend today, among those coming up on Thursday are Cape Lambert Resources, ING Office Fund, MAp Group, and Transurban Group.
To commodities, and the price of gold dropped $17.50 to US$1,239.70 an ounce for the June contract on Comex. Silver is down 37 cents at US$18.80 and copper is up 6 cents at $2.94.
And the price of oil rose 64 cents to US$77.82 a barrel for July light crude in New York.
