Aussie stocks may be in for a flat start, with US stocks closing mixed on Tuesday. Better than expected US retail sales data indicated economic recovery is gradually progressing, albeit at a slow pace.
In US economic news: The Commerce Department reported retail sales rose for the second consecutive month increasing 0.4 per cent in August, after a revised 0.3 per cent the month before. Another Government report showed business inventories increased 1 per cent in July, after an upwardly revised increase of 0.5 per cent the month before. On Tuesday, the Dow Jones Industrial Average closed 18 points lower at 10,526. The S&P 500 Index is flat at 1,121 and the NASDAQ is up 4 at 2,290.
European stocks were steady: London’s FTSE up 2 points, Paris is up 7 and Frankfurt up 14.
Asian markets were mixed: Hong Kong’s Hang Seng was 38 points up on Tuesday, Tokyo’s Nikkei down 23 points and China’s Shanghai Composite was flat.
The Australian share market finished higher on Tuesday. The S&P/ASX 200 Index closed 12 points up to 4,627 and on the futures market the SPI200 is down 10 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 93.92 US cents, 60.47 Pence Sterling, 78 Yen and 72.31 Euro cents.
In local economic news: Due out today the Australian Bureau of Statistics dwelling unit commencements for June and sales of new motor vehicles for August.
In business news: Shares in National Australia Bank Ltd (ASX:NAB) closed steady at $25.22 on Tuesday. NAB has officially terminated its $13.3 billion takeover bid for AXA Asia Pacific Holdings Ltd (ASX:AXA). Following the second rejection from the Australian Competition and Consumer Commission, the bank says continuing with the proposal is not in the best interests of shareholders. Adding, that the wealth management industry remains an important part of the NAB’s future. National Australia Bank posted a profit of $2.1 billion for the six months to 31 March 2010.
Shares in David Jones (ASX:DJS) closed 1.55% higher at $5.21 on Tuesday. Former David Jones CEO Mark McInnes has sold 250,000 of his David Jones shares according to the retailer’s share registry, says The Age. The paper reports since having left his position the sale has gained Mr McInnes $1.2 million to pay a tax obligation prompted from his surprise resignation in June amid claims of inappropriate behaviour towards a female staff member. A spokesperson for Mr McInnes has told the paper that the sale of David Jones shares is no reflection of Mr McInnes’s confidence in the retailer. David Jones reported a profit of $100.5 million for the 26 weeks to January 23, up from $91.2 million in fiscal 2009.
To ex-dividends, there are no companies going ex-dividend today, but among those coming up tomorrow we have Bentley Capital, Brambles and Carsales.com.
To commodities: The price of gold has surged to a record high up US$24.60 to $1269 for the September contract on Comex, silver is up $0.29 to $20.40 and copper is down $0.01 at $3.46 a pound.
The price of oil is down $0.39 to US$76.80 a barrel for October light crude in New York.
