The Australian share market looks set for a positive start, Wall St closing stronger after the Federal Reserve’s September meeting minutes indicated it will work to offer more support to the economy and suggested it is arranging additional stimulus measures.
On Tuesday, the Dow Jones Industrial Average closed 10 points up at 11,020. The S&P 500 Index is up 4 at 1,170 and the NASDAQ is up 16 at 2,418.
European stocks were lower: London’s FTSE down 11 points, Paris is down 20 and Frankfurt down 5.
Asian markets were mixed: Hong Kong Hang Seng down 86, Tokyo’s Nikkei was down 200 and China was up 34.
The Australian share market finished lower on Tuesday. The S&P/ASX 200 Index closed 79 lower to 4,618 and on the futures market the SPI200 is up 35 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying 98.64 US cents, 62.42 Pence Sterling, 80.65 Yen and 70.88 Euro cents.
To economic news: Due out today is the Australian Bureau of Statistics lending finance data for August as well as building activity data for June. Also expected, the Wesptac-Melbourne Institute survey of consumer sentiment for October and National Australia Bank’s Australian Residential Property Survey for the September Quarter.
In company news: Shares in Rio Tinto Ltd (ASX:RIO) closed 2.77% down at $77.87 on Tuesday. The European Commission will shortly announce whether Rio’s $120 billion iron ore joint venture with rival miner BHP Billiton Ltd (ASX:BHP) is anti-competitive. According to Reuters, EU antitrust regulators have indicated that they have completed the initial investigation into the tie-up, with the outcome soon be revealed, and will meet with the two global miners by the end of this month. The proposed merger has sparked competition concerns throughout the world, last week Rio acknowledged that clearance from regulators is a definite obstacle. While many countries are thought to be assessing the deal, clearance from the Commission is significant due to the competition concerns that European steel producers have raised. Rio Tinto recorded a $7.37 billion profit in the six months to 30 June 2010.
Shares in Foster’s Group Ltd (ASX:FGL) closed 1.3% down at $6.06 on Tuesday. Foster’s Treasury Wine Estates will boost its production and target the higher-end wine market, through a $5.3 million upgrade of its Coldstream Hills winery in Victoria's Yarra Valley. The beverages company will concentrate on higher-priced wines, ahead of the demerger of its beer division planned for next year. Treasury Wine Estates chief David Dearie, says the strong Aussie dollar has meant the brand will focus on more premiumisation in overseas markets. Foster’s Group posted a loss of $463.4 million in the 2010 financial year.
To ex-dividends, while no companies are going ex-dividend today, coming up in the next few days we have Ausdrill, TPG Telecom and Tidewater Investments.
To commodities: and the price of gold is down US$7.70 to US $1346 an ounce for the December contract on Comex, silver is down US$0.20 to $23.15 and copper is steady at $3.79 a pound. The price of oil is down $0.54 to US$81.67 a barrel for November light crude in New York.
