The local share market looks set for a positive start this morning after stocks on Wall St managed to squeeze out a gain overnight.
Returning from the Independence Day market holiday, US stocks closed out a volatile session modestly higher as investors scooped up bargains in stocks that have taken a hammering recently.
In economic news out of the US, the Institute for Supply Management’s index on the services sector of the economy fell to a read of 53.8 in June from 55.4 in May. Economists expected the index to fall to 55. However the index remains above the 50 mark indicating expansion in the sector.
On Tuesday, the Dow Jones Industrial Average closed 57 points higher at 9,744. The S&P 500 Index gained 5 points to 1,028 and the NASDAQ added 2 points at 2,094.
European stocks closed higher; London’s FTSE is up 141 points, Paris gained 91 and Frankfurt rose 125.
Asian markets also closed stronger on Tuesday: Hong Kong’s Hang Seng is up 242, Tokyo’s Nikkei added 71 and China’s Shanghai Composite is up 45.
The Australian share market finished stronger on Tuesday. The S&P/ASX 200 Index closed 54 points higher at 4,276 and on the futures market the SPI200’s up 11 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 85.27 US cents, 56.3 Pence Sterling, 74.67 Yen and 67.55 Euro cents.
In economic news: AiG/HIA performance of construction index for June is out today.
In business news: Shares in mining giant BHP Billiton Ltd (ASX:BHP) rose 0.46% to $37.15 on Tuesday. The miner says it is encouraged by the outcome of the new Mineral Resource Rent Tax and says it provides a good foundation for the future of the industry in Australia. In a letter to shareholders Chairman Jac Nasser reassured investors that while there is still a lot of work to be done before the tax is enacted it will work with the government to ensure that the final outcome of the minerals taxation proposal maintains the international competitiveness of Australia’s resources industry. According to The Australian Financial Review, the government has come under fire with questions being asked as to how it can make big concessions to the major miners whilst only giving up $1.5 billion in revenue over two years. BHP earned $7.24 billion in the 12 months to June 30, 2009.
Shares in industrial cleaning and waste management company Transpacific Industries Group Ltd (ASX:TPI) gained 2.07% to $0.985 yesterday. The company says it is has no explanation for recent falls in its share price. The company’s shares have fallen from a closing price of $1.12 on June 22 to 93 cents during trade yesterday. In response to an ASX enquiry, Transpacific Industries says it expects net profit after tax for the 12 months to June 30, 2010 to be materially better than last fiscal year, which included significant asset impairments and mark to market adjustments of interest rate hedges. The company says it expects net profit after tax attributable to ordinary equity holders for the for the 2010 financial year to be materially in line with current broker consensus forecast, which it understands to be approximately $56 million. Transpacific Industries Group posted a loss of $218.36 million for the 2009 financial year.
Taking a look at ex-dividends now, and just one company going ex-dividend today and that is Abacus Property Group with 1.65 cent unfranked dividend. Coming up tomorrow we have TTA Holdings and on Friday is Jindalee Resources.
To commodities, and the price of gold lost $12.60 to US$1,194.80 an ounce for the July contract on Comex. Silver is up 13.5 cents to US$17.83 and copper is 6 cents higher at $2.96 a pound.
And the price of oil fell 16 cents to US$71.98 a barrel for August light crude in New York.
