The local share market is likely to be in for a positive start this morning after Wall St closed higher overnight.
Recovering from losses on Tuesday, US stocks rallied Wednesday closing the session sharply higher. Investors welcoming some better than expected earnings results, confidence growing that the Federal Reserve will announce more quantitative easing at its next monetary policy meeting in November.
In economic news out of the US: The Federal Reserve released its Beige Book which showed modest growth in the economy in a number of regions. According to CNN Money the Fed reported encouraging signs in the manufacturing, travel, tourism and auto industries.
On Wednesday, the Dow Jones Industrial Average closed 129 points higher at 11,108. The S&P 500 Index is up 12 at 1,178 and the NASDAQ added 20 to close at 2,457.
European stocks were also higher: London’s FTSE gained 25 points, Paris up 21 and Frankfurt advanced 34.
Asian markets were mixed: Hong Kong Hang Seng dropped 207 yesterday, Tokyo’s Nikkei lost 158 and China up 2.
Taking a look at the local market. The S&P/ASX 200 Index closed 31 points lower at 4,625 yesterday, and on the futures market the SPI200 is up 24 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying 98.69 US cents, 62.3 Pence Sterling, 80.1 Yen and 70.68 Euro cents.
In company news: Shares in Leighton Holdings Ltd (ASX:LEI) fell 1.48% to $37.21 on Wednesday. Leighton’s German parent Hochtief wants to force its Spanish suitor ACS to acquire its Aussie arm Leighton, in a move designed to thwart its own takeover by ACS. The report in The Sydney Morning Herald this morning says Hochtief has applied to the Australian Securities and Investments Commission in an attempt to make the Spanish construction company buy its Aussie subsidiary Leighton. ACS, who holds a 30 per cent interest in Hochtief, wants to take a majority stake in the company; however its offer has been flatly rejected by the company. Earlier this week Leighton applied to ASIC to try and protect the interests of its minority shareholders. Leighton Holdings reported profit of $615.13 million for the 12 months to June 30, 2010.
Shares in Virgin Blue Holdings Ltd (ASX:VBA) dropped 3.23% to $0.45 yesterday. The airline has been given a glimmer of hope that its proposed alliance with Air New Zealand may still come to fruition after two New Zealand Airports dropped their opposition to the deal. Virgin Blue and Air New Zealand have eased concerns, brought to light by Wellington Airport and Auckland Airport, that the joint venture would lessen flights and increase fares, by agreeing not to cut any flights. The Australian Competition and Consumer Commission said it would reject the proposed alliance last month because of concerns over competition in the industry. Virgin Blue reported profit of $21.3 million for the 2010 financial year.
To ex-dividends: And there is just one company going ex-dividend today, Trust Company with a 17 cent fully franked dividend. Coming up on Monday is Austereo and Halcygen Pharmaceuticals.
To commodities: and the price of gold is up US$8.20 to US $1344 an ounce for the December contract on Comex, silver is up 8.4 cents to $23.86 and copper is 3.6 cents higher at $3.79 a pound.
The price of oil is up $2.28 to US$81.77 a barrel for November light crude in New York.
