The Australian share market may open higher today, following gains from Wall St on Monday. US stock rallied, closing at a 10 week high, as positive economic reports and European bank earnings encouraged investors.
In US economic news: The Commerce Department reported construction spending increased 1% in June to a seasonally adjusted annual rate of $836 billion. Also, the Institute for Supply Management’s manufacturing index eased to 55.5 in July, from 56.2 in June, a reading of above 50 indicating growth.
On Monday, the Dow Jones Industrial Average closed 208 points higher at 10,674. The S&P 500 Index is up 24 points at 1,126 and the NASDAQ is up 41 points at 2,295.
European stocks were higher; London’s FTSE up 139 points, Paris is up 109 and Frankfurt up 144.
Asian markets were higher: Hong Kong’s Hang Seng up 383 points on Monday, Tokyo’s Nikkei up 33 points and China’s Shanghai Composite up 35 points.
The Australian share market finished stronger on Monday. The S&P/ASX 200 Index closed 48 points higher at 4,542 and on the futures market the SPI200 is up 64 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 91.28 US cents, 57.45 Pence Sterling, 78.92 Yen and 69.27 Euro cents.
In local economic news: Expected out today is the Commonwealth Bank-Australia Chamber of Commerce and Industry: business expectations survey for the June quarter, the RBA’s interest rate decision and the ABS’s retail trade for June and building approvals for June.
In business news: Shares in Linc Energy Ltd (ASX:LNC) are steady $1.89 on Monday. Linc Energy has responded to media speculation regarding an impending sale of one of the company’s none core assets in Queensland to one of India’s largest coal importers, Adani Enterprises. CEO Peter Bond says Linc remains in detailed and advanced negotiations with a number of parties, but has not as yet agreed upon contract terms. Mr Bond has confirmed Adani Enterprises is one of those parties. Linc Energy reported a loss of $42.18 million for the year ending 30 June 2009.
Shares in Macquarie Group Ltd (ASX:MQG) are flat at $37.67 on Monday. According to the Sydney Morning Herald, Macquarie Group may soon be cutting staff numbers to rein in costs. CEO and Managing Director Nicholas Moore last week warned, that weak global market conditions had caused some of its key businesses to report lower earnings for the June quarter, and that Macquarie expects a weaker 2011. The paper reports that Macquarie currently employs a record amount of staff, and paying international rates for key staff is putting pressure on the company as they expand overseas. Macquarie Group reported a profit of over $1 billion for the year ending 30 March 2010.
To ex-dividends: Three companies are going ex-dividend today, Djerriwarrh Investments 16 cent fully franked dividend, Ozgrowth with 1.1 cent fully franked dividend and Westoz Investment Company with a 7.5 cent fully franked dividend.
To commodities, and the price of gold is up $1.70 to US$1183 an ounce for the August contract on Comex. Silver is up $0.42 cents to US$18.40 and copper is up $0.08 at $3.38 a pound.
The price of oil is up $2.39 to US$81.34 a barrel for September light crude in New York.
