The Australian share market may be in for a flat start this morning after stocks on Wall Street closed steady overnight. US stocks were little changed overnight after the US Federal Reserve said it was looking into new ways to boost the economy.
In US economic news: According to the minutes of the Federal Reserve’s June meeting, the Central Bank has reduced its outlook for GDP to growth of between 3% and 3.5% this year, down from earlier guidance of between 3.2% and 3.7%. The Fed also predicts that the unemployment rate in the US will range between 9.2% and 9.5% this year. The Commerce Department says retail sales dropped 0.5% in June, following a 1.1% drop in May.
On Wednesday, the Dow Jones Industrial Average closed 4 points higher at 10,367. The S&P 500 Index is flat at 1,095 and the NASDAQ added 8 points at 2,250.
European stocks were mixed; London’s FTSE down 18 points, Paris is down 5 and Frankfurt rose 19.
Asian markets were higher on Wednesday: Hong Kong’s Hang Seng up 130, Tokyo’s Nikkei up 258 and China’s Shanghai Composite up 20.
The Australian share market finished higher on Wednesday. The S&P/ASX 200 Index closed 82 points higher at 4,462 and on the futures market the SPI200 is down 16 points. Turning to currencies and the Aussie Dollar at 7:35AM was buying 88.44 US cents, 57.94 Pence Sterling, 78.25 Yen and 69.42 Euro cents.
In local economic news: Due out today, ABS sales of new motor vehicles for June and, the Melbourne Institute Survey of Consumer Inflationary Expectations. Also, the Westpac-Melbourne Institute Survey of consumer unemployment expectations.
In business news: Shares in Geodynamics Ltd (ASX:GDY) are up 5.43% at $0.485 on Wednesday. Geodynamics has executed a $90 million funding deed from the Federal Government under the Renewable Energy Demonstration Program. The company says the grant represents the largest amount awarded to any project under the REDP program. Geodynamics plans to establish a commercial demonstration plant in the Cooper Basin to demonstrate cost effective technology at a commercial scale, supporting the development of units and transmission lines. Geodynamics recorded a loss of $15.31 million for the year ending 30 June, 2009.
Shares in Indophil Resources Ltd (ASX:IRN) down 42.47% at $0.63 on Wednesday. The immediate future of Indophil’s Tampakan mine in the Philippines is in question. The company says it has not been able to obtain clarity on a proposed Environmental code to ban open pit mining in South Cotabato where the project is located. Indophil’s flagship asset is its 37.5% interest in Tampakan. Indophil also says following the termination of a takeover offer from China’s Zijin for the company, it is now in talks with a number of other interested parties, both Chinese and non-Chinese groups. Indophil Resources recorded a loss of $10.59 million for the year ending 30 December, 2009.
To commodities, and the price of gold down $6.50 to US$1,206.80 an ounce for the July contract on Comex. Silver is up $0.04 cents to US$18.27 and copper is down $0.01 at $3.00 a pound.
And the price of oil is down $0.11 to US$77.04 a barrel for August light crude in New York.
