The Australian share market is likely to open stronger this morning following a positive lead from Wall St overnight.
US stocks rallied near the end of the session on Wednesday following the dollar higher after Japan’s decision to intervene and sell the Yen.
In economic news out of the US on Wednesday: The Commerce Department reported a 0.2% rise in industrial production in August, below economist expectations for a rise of 0.3%.
And the Government said US import prices rose 0.6% in August, export prices up 0.8% in the month.
On Wednesday, the Dow Jones Industrial Average closed 46 points higher at 10,573. The S&P 500 Index is up 4 at 1,125 and the NASDAQ is up 12 at 2,301.
European stocks were lower: London’s FTSE fell 12 points, Paris is down 19 and Frankfurt dropped 14.
Asian markets were mixed on Wednesday: Hong Kong’s Hang Seng was 30 points higher, Tokyo’s Nikkei up 217 points and China’s Shanghai Composite lost 36.
The Australian share market finished higher on Wednesday. The S&P/ASX 200 Index closed 35 points stronger at 4,662 and on the futures market the SPI200 is up 11 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 93.84 US cents, 60.05 Pence Sterling, 80.46 Yen and 72.12 Euro cents.
In local economic news: ABS data on international merchandise imports for August is out today as well as labour force data.
In business news: Shares in Karoon Gas Australia Ltd (ASX:KAR) fell 1.13% to $7.85 on Wednesday. The company says it plans to raise capital by undertaking an institutional share placement to fund further exploration. Karoon did not say how much it intends to raise, only that the proceeds will go towards boosting its cash position for its continued exploration and appraisal program in the Browse Basin, and exploration in Brazil and Peru. Karoon says Merrill Lynch is acting as lead manager and book-runner for the placement, with Southern Cross Equities, Citigroup Global Markets, EL&C Baillieu, BBY and Bell Potter acting as participating brokers. The company’s shares will remain in a trading halt until the placement is complete. Karoon Gas Australia posted a loss for the half year to December 31, 2009.
Shares in mineral exploration company Reed Resources Ltd (ASX:RDR) rose 0.98% to $0.515 yesterday. Reed says it may look at spinning off some of its portfolio of projects in Western Australia. According to the Australian Associated Press, Managing Director, Chris Reed says some of the company’s projects are bigger than others, some more advanced, but each could run as a separate company if the board decides to spin them off. It is likely the company’s biggest asset, the Barrambie vanadium project, will remain under the Reed Resources umbrella. Reed Resources booked a loss for the six months to December 31, 2009.
To ex-dividends, and among those going ex-dividend today is Bentley Capital with a 1 cent fully franked dividend, Brambles with a 12.5 cent 20% franked dividend, Carsales.com with an 8.3 cent fully franked dividend, and Mineral Resources with a 13.6 cent fully franked dividend.
To commodities: and the price of gold dropped US$3 to $1266 for the September contract on Comex, silver is up $0.14 to $20.54 and copper is steady at $3.46 a pound.
The price of oil is down $0.78 to US$76.02 a barrel for October light crude in New York.
