The Australian share market may open higher today, following a positive lead from Wall St overnight, US stocks rising amid optimism surrounding economic recovery and a much awaited statement from the Federal Reserve on interest rates.
On Monday, the Dow Jones Industrial Average closed 45 points higher at 10,699. The S&P 500 Index is up 6 points at 1,128 and the NASDAQ is up 17 points at 2,306.
European stocks were higher; London’s FTSE up 78 points, Paris is up 61 and Frankfurt up 92.
Asian markets were mixed: Hong Kong’s Hang Seng up 123 points on Monday, Tokyo’s Nikkei down 70 points and China’s Shanghai Composite up 14 points.
The Australian share market finished stronger on Monday. The S&P/ASX 200 Index closed 29 points higher at 4,595 and on the futures market the SPI200 is up 4 points. Turning to currencies and the Aussie Dollar at 7:35AM was buying 91.66 US cents, 57.62 Pence Sterling, 78.8 Yen and 69.31 Euro cents.
In local economic news: National Australia Bank is today expected to release its monthly business survey for July.
In business news: Shares in AXA Asia Pacific Holdings Ltd (ASX:AXA) were up 5.37% to $5.49 on Monday. AXA Asia Pacific Holdings says it has agreed with National Australia Bank Ltd (ASX:NAB) to extend the period for NAB to satisfy issues raised by the Australian Competition and Consumer Commission to the end of 9 September. NAB has been awaiting a decision from the competition watchdog regarding its plan to divest AXA APH’s North platform to mid-sized rival IOOF Holdings, in an effort to overcome the ACCC’s concern that NAB would be too powerful if the full acquisition of AXA APH’s Australian and New Zealand businesses went ahead. The companies mutual extension follows an announcement from the ACCC yesterday advising that it anticipates making a final decision on NAB’s proposal by 9 September. AXA Asia Pacific Holdings reported a profit of $679 million for the year to 30 December 2009.
Shares in Santos Ltd (ASX:STO) were up 0.07% to $13.49 on Monday. Santos has upgraded its half year guidance, advising that it expects to report between $180 million to $200 million in net profit for the six months to 30 June. The oil and gas producer says the result is significantly above the prior corresponding period, and ahead of analysts’ consensus of $152 million, based on a survey of analyst forecasts conducted by the company. Operating earnings, measured by earnings before interest, tax, depreciation and exploration expense are expected to be in line with analysts forecasts. Santos will announce its results for the first half year of 2010, on 26 August. Santos posted a profit of $434 million for the year to 30 December 2009.
To companies going ex-dividend today, among those we have Crane Group with a 22 cent fully franked dividend and Tabcorp with a 25 cent fully franked dividend.
To commodities, and the price of gold is down $2.70 to US$1200 an ounce for the August contract on Comex. Silver is down $0.23 cents to US$18.23 and copper is up $0.01 at $3.35 a pound.
The price of oil is up $0.78 to US$81.48 a barrel for September light crude in New York.
