Aussie shares are tipped to open flat today, the futures pointing to a weaker start following Wall St closing in the red for the second day. Gold however continued to soar, advancing to record highs.
In US economic news: The Commerce Department showed wholesale inventories advanced more than expected, up 1.5 per cent in September from a rise of 1.2 per cent the month before. The National Federation of Independent Business revealed its Index of Small Business Optimism increased 2.7 points to a read of 91.7 in October, representing a lift in economic activity while still below levels recorded before the recession.
On Tuesday, the Dow Jones Industrial Average closed 60 points lower at 11,347. The S&P 500 Index closed 10 points weaker at 1,213 and the NASDAQ dipped 17 points to close at 2,563.
European stocks were higher: London’s FTSE up 25 points, Paris is up 32 and Frankfurt up 37.
To Asian markets, stocks were lower: Hong Kong’s Hang Seng was down 254 points, Tokyo’s Nikkei was down 38 points and China’s Shanghai Composite down 25.
The Australian share market finished lower on Tuesday. The S&P/ASX 200 Index closed 38 points lower to 4,741 and on the futures market the SPI200 is down 12 points. Turning to currencies: At 8:35AM this morning the Aussie is buying 1.0035 US cents, 62.79 Pence Sterling, 82.03 Yen and 72.86 Euro cents.
In local economic news: Due out today the Australian Bureau of Statistics housing finance for September and the Westpac-Melbourne Institute survey of consumer sentiment.
In company news: Shares in Qantas Airways Ltd (ASX:QAN) fell 1.79% to close at $2.75 on Tuesday. Following the grounding of its fleet of Airbus A380 superjumbos, Qantas has been dealt another blow with European regulators fining the airline $12 million as part of an international air-freight cartel. The penalty fee is part of over $1 billion of fines handed out by the European Commission to 11 airlines for fixing air-freight tariffs, marking the end of a lengthy investigation. Qantas had earlier flagged it expected a substantial penalty, and the fine comes in at the lower end of fines handed out to the other airlines. Qantas recorded a $116 million net profit in the year to 30 June 2010.
Shares in Fortescue Metals Group Ltd (ASX:FMG) closed 0.44% down yesterday at $6.76. Fortescue is reportedly gearing up for a $US8.4 billion expansion of its iron ore operations in Western Australia. According to The Australian the group will boost growth through a 100 million-tonne-a-year expansion in the Pilbara which will be funded through cashflow from existing mines and debt. The expansion is expected to be approved when the Fortescue board meets next week. Fortescue Metals Group booked a $681.62 million net profit in the 2010 financial year.
To ex-dividends: And while no companies are going ex-dividend today, coming up tomorrow is Orica, and on Friday, Bank of Queensland and National Australian Bank.
To commodities: and the price of gold is up $US6.90 to US$1410 an ounce for the December contract on Comex, silver is up $US1.47 to $28.91 and copper is up $0.09 at $4.04 a pound. The price of oil is down $US0.34 at $86.72 a barrel for December light crude in New York.
