The Australian share market looks to open lower today. Overnight Wall St closed with little changed ahead of three major events this week, the economic stimulus decision expected from the Fed tomorrow, midterm elections and the October jobs report. Closer to home the futures are pointing to a weaker start as investors await the RBA’s interest rate decision.
In US economic news: Manufacturing growth was reported to be better than expected with the Institute for Supply Management's manufacturing index increasing to 56.9 in October, from 54.4 the month before. While the Commerce Department showed personal income and spending came in less than expected. Personal income fell 0.1% while personal spending rose 0.2% in September.
On Monday, the Dow Jones Industrial Average closed 6 points higher at 11,125. The S&P 500 Index closed 1 point higher at 1,184 and the NASDAQ closed 3 points lower at 2,505.
European stocks were higher: London’s FTSE up 19 points, Paris is up 8 and Frankfurt up 3.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 557 points, Tokyo’s Nikkei was down 48 points and China’s Shanghai Composite up 75.
The Australian share market finished higher on Monday. The S&P/ASX 200 Index closed 37 points higher to 4,699 and on the futures market the SPI200 is down 17 points. Turning to currencies and the Aussie Dollar at 8:50AM was buying 98.75 US cents, 61.56 Pence Sterling, 79.49 Yen and 71.07 Euro cents.
In local economic news: All eyes will be on the Reserve Bank’s monthly meeting this afternoon, with a decision due on interest rates at 2:30pm. Also expected, the Commonwealth Bank-Australian Chamber of Commerce and Industry business expectations survey.
In company news: Shares in Fortescue Metals Group Ltd (ASX:FMG) closed 0.96% up at $6.31 on Monday. Fortescue CEO Andrew Forrest has again slammed the federal government's proposed mineral resource rent tax, telling ABC TV it is an attack on Western Australia. Speaking on the Q&A program, Mr Forrest said the state is a political target as it is not a Labor-governed state and called on all Western Australians to reject the tax. On the same program Western Australia’s premier Colin Barnett confirmed his opposition to the proposed tax, vowing his government would not accept the levy. Fortescue Metals earned a profit of $681.62 million in fiscal 2010.
On Monday shares in GPT Group (ASX:GPT) closed steady at $2.79. Property investor GPT Group has affirmed it is on track to deliver operating income of more than $400 million this year. In a September quarter update CEO Michael Cameron says the group performed well, having also sold its Ayers Rock Resort for $300 million. Mr Cameron also announced that security-holders will collect a 4.1 cent distribution per unit for the September quarter which will be paid on 26 November. GPT Group rebounded from a loss of over $1.069 billion in 2009 to a profit of $145 million in the year to 30 June 2010. To commodities: The price of gold is down US$7.00 to US $1350 an ounce for the December contract on Comex, silver is down US$0.01 to $24.55 and copper is up $0.05 at $3.78 a pound. The price of oil is up $1.52 to US$82.95 a barrel for December light crude in New York.
