Aussie shares are likely to lift this morning, following US stocks rising to a five week high on Monday, investor sentiment buoyed by positive Chinese economic data and new global banking rules, requiring financial institutions to increase their reserve capital.
On Monday, the Dow Jones Industrial Average closed 81 points higher at 10,544. The S&P 500 Index is up 12 points to 1,122 and the NASDAQ is up 43 at 2,286
European stocks were higher: London’s FTSE up 64 points, Paris is up 41 and Frankfurt up 47.
Asian markets were higher: Hong Kong’s Hang Seng was 401 points up on Monday, Tokyo’s Nikkei up 83 points and China’s Shanghai Composite was up 25 points.
The Australian share market finished higher on Monday. The S&P/ASX 200 Index closed 55 points up to 4,615 and on the futures market the SPI200 is up 14 points. Turning to currencies and the Aussie Dollar at 7:35AM was buying 93.54 US cents, 60.65 Pence Sterling, 78.32 Yen and 72.65 Euro cents.
In local economic news: Due out today the KPMG annual general insurance industry survey.
In business news: Shares in Stockland (ASX:SGP) closed 0.75% up at $4.05 on Monday. Stockland has upped its bid for Aevum Ltd (ASX:AVE) in a final effort to takeover the retirement village operator. The total value of $1.80 per share includes an increased offer price of $1.77 per share plus the benefit of Aevum's three cent per share final dividend, Stockland declaring the offer unconditional and final. Stockland has advised the offer will close at the end of the month, while Aevum says it will consider the revised offer and recommends shareholders take no action. Stockland posted a profit of $478.4 million in fiscal 2010, rebounding from a loss of $1.8 billion the year before.
Shares in Qantas Airways Ltd (ASX:QAN) were 0.77% down at $2.59 on Monday. Qantas is concerned about rival airline Virgin Blue Holdings Ltd's (ASX:VBA) alliance with Abu Dhabi-based Etihad, and has lodged a submission with the Australian Competition & Consumer Commission, according to The Australian. The paper reports that Qantas fears passengers may be negatively affected if the regulator offers preliminary approval. The move comes following comments from Virgin’s chairman Richard Branson promoting alliances between smaller airlines to increase competition in the aviation industry. Qantas reported a profit of $116 million for the year to 30 June 2010.
To ex-dividends, there are 4 companies going ex-dividend today: CIC Australia with a 1 cent fully franked dividend, Little World Beverages with a 5 cent fully franked dividend, Servcorp with a 5 cent fully franked dividend and Tassal Group with a 2 cent unfranked dividend.
To commodities: and the price of gold is up US$0.60 to US $1245 for the September contract on Comex, silver is up US$0.31 to $20.11 and copper is up $0.07 at $3.47 a pound. The price of oil is up $3.47 to US$77.19 a barrel for October light crude in New York.
