The Australian share market appears set for a positive start with Wall Street recording its third consecutive day of gains.
US stocks closed higher on Thursday following a bigger than expected drop in jobless claims and strength in the euro.
In US economic news: The Labor Department reported that the number of Americans filing new unemployment claims fell to 454,000 last week, down from 475,000 the week before. Expectations were for a fall to 460,000. According to Reuters same-store retail sales rose 3.1% in June compared to forecasts for a rise of 3.2%.
On Thursday, the Dow Jones Industrial Average closed 121 points higher at 10,139. The S&P 500 Index gained 10 points to 1,070 and the NASDAQ added 16 points at 2,175.
European stocks closed higher; London’s FTSE is up 91 points, Paris gained 55 and Frankfurt rose 43.
Asian markets were mixed on Thursday: Hong Kong’s Hang Seng is up 193, Tokyo’s Nikkei is also up 256 and China’s Shanghai Composite is down 6.
The Australian share market finished stronger on Thursday. The S&P/ASX 200 Index closed 102 points higher at 4,357 and on the futures market the SPI200 is up 28 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 87.68 US cents, 57.85 Pence Sterling, 77.51 Yen and 69.08 Euro cents.
In business news: Shares in Bauxite Resources Ltd (ASX:BAU) steady at $0.14 on Thursday. Bauxite Resources has warned its shareholders against joining a proposed class action against the company by IMF Ltd. Litigation funding company IMF allege that Bauxite has breached its disclosure obligations.Bauxite Resources allegedly continued plans to extract bauxite in the Western Australian Town of Bindoon, despite the Shire of Chittering banning such mining. The company says that its disclosure was appropriate and has urged its shareholders to seek independent legal advice. Bauxite Resources recorded a loss of $5.15 million for the year ending 30 June, 2009.
Shares in Ramelius Resources Ltd (ASX:RMS) closed up 5.38% at $0.49 yesterday. Ramelius Resources has purchased the Mount Magnet gold project in Western Australia, for $40 million from South Africa’s Harmony Gold Mining Company. Since 1891, The Mount Magnet project has produced 5.6 million ounces of gold. Ramelius currently has $96 million in cash and gold on hand and is debt free, the acquisition being funded from its existing cash reserves. The settlement is expected to take place in late July 2010. Ramelius recorded a profit of $4.97 million for the year ending 30 June, 2009.
Taking a look at ex-dividends now, and Jindalee Resources are the only company going ex-dividend today with a 55 cent fully franked dividend.
To commodities, and the price of gold down $2.80 to US$1,195.80 an ounce for the July contract on Comex. Silver is down 13 cents to US$17.85 and copper is steady at $3.01 a pound.
And the price of oil is up $1.37 cents to US$75.44 a barrel for August light crude in New York.
