The Australian share market may open lower today, after a low volume session on Wall St closed the day weaker. The slower rate of US economic recovery was highlighted by mixed economic reports, with investors remaining cautious ahead of key monthly jobs data out later this week.
In US economic news: A government report revealed personal income increased 0.2% in July, as expected, and while consumer spending grew 0.4%, above expectations, personal savings declined compared to the month before.
On Monday, the Dow Jones Industrial Average closed 141 points lower at 10,010. The S&P 500 Index is down 16 points to 1,049 and the NASDAQ is down 34 at 2,120.
European stocks were lower; London’s FTSE was closed, Paris is down 20 and Frankfurt down 39.
Asian markets were higher: Hong Kong’s Hang Seng up 140 points on Monday, Tokyo’s Nikkei up 158 points and China’s Shanghai Composite up 42 points.
The Australian share market finished higher on Monday. The S&P/ASX 200 Index closed 83 points higher to 4,453 and on the futures market the SPI200 is down 54 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 89.18 US cents, 57.68 Pence Sterling, 75.46 Yen and 70.42 Euro cents.
In local economic news: The RBA is expected to release financial aggregates data for July, and the ABS is expected to release data on retail trade for July, building approvals for July, government spending for the June quarter and the balance of payments and international investment position. In business news: Shares in Rio Tinto Ltd (ASX:RIO) closed 2.47% higher at just over $71.00 on Monday. Rio has announced a US$1.6 billion investment to develop the Hope Downs 4 iron ore project in Western Australia, to link with its existing rail, power and port infrastructure in the Pilbara. Gina Rinehart’s Hancock Prospecting will form the joint venture project that will produce an annual rate of 15 million tonnes of iron ore, with first production expected in 2013. Rio Tinto reported a profit of $5.4 billion for the 2009 calendar year.
Shares in Newcrest Mining Ltd (ASX:NCM) closed 2.07% up to just over $36.00 on Monday. Newcrest mining says it has taken control of Lihir Gold Ltd (ASX:LGL), following shareholder and overseas regulatory approval. The miner advises the combined group will form the fourth largest gold company in the world by market capitalisation. Newcrest Mining reported a profit of $248.1 million for year to 30 June.
To ex-dividends: There are 10 companies going ex-dividend today, among them Ansell with a 17.5 cent unfranked dividend, iiNet with a 6 cent fully franked dividend, Spotless Group with a 6 cent 60% franked dividend and Treasury Group with a 14 cent fully franked dividend.
Turning to commodities: The price of gold is up $1.50 to US$1237, silver is steady at $19.04, copper is up $0.05 at $3.41, and the price of oil is down $0.47 to US$74.70 a barrel for October light crude in New York.
