The Australian share market looks set to open stronger today after Wall Street’s rally overnight.
US stocks jumped on Wednesday on the back of an earnings upgrade from financial company State Street. State Street says it expects to report operating earnings of 92 cents per share on revenue of US$2.2 billion for the quarter just finished. Analysts were expecting the company to report earnings of 74 cents a share.
In economic news out of the US: The American Bankers Association reported that the number of consumers behind on their credit card payments dropped to an 8 year low of 3.8% in the first quarter.
On Wednesday, the Dow Jones Industrial Average closed 275 points higher at 10,018. The S&P 500 Index gained 32 points to 1,060 and the NASDAQ added 66 points at 2,159.
European stocks closed higher; London’s FTSE is up 50 points, Paris gained 60 and Frankfurt rose 52.
Asian markets were mixed on Wednesday: Hong Kong’s Hang Seng is down 227, Tokyo’s Nikkei is also down 58 and China’s Shanghai Composite is up 12.
The Australian share market finished stronger on Wednesday. The S&P/ASX 200 Index closed 22 points lower at 4,255 and on the futures market the SPI200 is up 85 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 86.33 US cents, 56.9 Pence Sterling, 75.73 Yen and 68.35 Euro cents.
In economic news: ABS labour force data for June is out today as well as the release of Colonial First State Global Asset Management’s Responsible Investment Report.
In business news: Shares in BHP Billiton Ltd (ASX:BHP) rose 0.75% to $37.43 on Wednesday. Shares in Rio Tinto Ltd (ASX:RIO) rose 1.14% to $65.84 on Wednesday. The Australian Competition and Consumer Commission will again delay releasing its findings on BHP and Rio’s proposed merger of iron ore operations in Western Australian. The competition watchdog on Wednesday announced the extension was at the request of both companies, allowing them to make further submissions. A date is yet to be set for the announcement in which the ACCC will deem if the merger is applicable under the Trade Practices Act. BHP earned $7.24 billion in the 12 months to June 30, 2009. Rio Tinto earned $5.43 billion for calendar 2009.
Shares in Macquarie Telecom Group Ltd (ASX:MAQ) closed steady at $4.71 yesterday. Telecommunications company Macquarie Telecom says it expects earnings to grow by up to 22% for the full year. The company expects earnings before interest, tax, depreciation and amortisation to come in between $28 million and $29 million. Macquarie Telecom says that is also maintains a strong balance sheet with cash of $56.3 million as at June 30 2010. Macquarie Telecom Group pulled itself out of the red in fiscal 09 to post a profit.
Taking a look at ex-dividends now, and TTA Holdings are the only company going ex-dividend today with a 0.60 cent 70% franked dividend. Coming up tomorrow we have Jindalee Resources.
To commodities, and the price of gold up $3.80 to US$1,198.60 an ounce for the July contract on Comex. Silver is up 15 cents to US$17.98 and copper is 5 cents higher at $3.01 a pound.
And the price of oil is up $2.09 cents to US$74.07 a barrel for August light crude in New York.
