The Australian Share market may open higher today, following a positive session on Wall St overnight. US stocks closed the session modestly higher, at the start of the quarterly earnings period. After the closing bell, Alcoa Inc reported net income of US $136 million for the second quarter, compared to a loss of US $454 million for the same period last year. On Monday, the Dow Jones Industrial Average closed 18 points higher at 10,216. The S&P 500 Index gained almost 1 point to 1,079 and the NASDAQ added 2 points at 2,198.
European stocks closed higher; London’s FTSE up 34 points, Paris gained 13 and Frankfurt rose 12.
Asian markets were mixed on Monday: Hong Kong’s Hang Seng up 89, Tokyo’s Nikkei down 37 and China’s Shanghai Composite up 20.
The Australian share market finished stronger on Monday. The S&P/ASX 200 Index closed 14 points higher at 4,410 and on the futures market the SPI200 is up 16 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 87.72 US cents, 58.41 Pence Sterling, 77.78 Yen and 69.70 Euro cents.
In local economic news: ABS lending finance data for May is to be released, as well as NAB’s monthly business survey for June.
In business news: Shares in Cromwell Group (ASX:CMW) flat at $0.69 on Monday. Cromwell Group is to raise up to $120 million to fund the acquisition of the Qantas Headquarters in New South Wales. The property group last Wednesday withdrew a bid for Orchard group because of key conditions that financiers failed to approve, yet Cromwell says that it remains focused on acquisitions. The raising comprises of a non-underwritten placement to raise up to $80 million at $0.75 a share, and a rights issue to raise between $40 and $68 million at $0.72 a share. Redefine, a Cromwell shareholder, says it will subscribe for a minimum of $52 million under the placement. Cromwell Group recorded a loss of $113.51 million for the year ending 30 June 2009.
Shares in National Australia Bank Ltd (ASX:NAB) up 0.87% at $24.25 on Monday. According to Reuters, the bank is to boost its investment in UK subsidiary Clydesdale by up to $581 million. Reuters says the investment was approved by UK regulators earlier this month. British regulators such as Britain’s Financial Services Authority are asking banks to increase capital to protect depositors, says Reuters, against risky loan losses and uncertain economic conditions. National Australia Bank recorded a profit of $2.6 billion for the year ending 30 September, 2009.
To commodities, and the price of gold down $11.10 to US$1,198.50 an ounce for the July contract on Comex. Silver is down $0.15 cents to US$17.90 and copper is down $.045 a pound $3.00.
And the price of oil is down $1.14 cents to US$74.95 a barrel for August light crude in New York.
