The Australian share market is set to open higher today as it is generally receiving positive leads from equities trading in offshore markets overnight; although copper and precious metals were lower and oil was higher. Major stock indices in the US rose slightly after a report revealed that the US economy grew faster than previously expected in the Northern hemisphere summer.
On Wednesday, the Dow Jones Industrial Average, closed 26 points higher at 11,559. S&P500 lifted 4 points to 1,259 and the NASDAQ added 4 points to 2,671.
European stocks were mixed: London’s FTSE up 32 points, Paris down 8 and Frankfurt is down 10.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng up 51, Tokyo’s Nikkei down 24 points and China’s Shanghai Composite down 26 points.
The Australian share market finished higher on Wednesday. The S&P/ASX 200 Index closed 7 points higher at 4,778 and on the futures market the SPI is up 17 points. Currencies: The Aussie dollar at 8:25AM was buying just over $US1, 65.01 Pence Sterling, 83.62 Yen and 76.37 Euro cents.
Company news: Shares in Rio Tinto Ltd (ASX:RIO) closed 0.09 per cent higher at $86.78. Japanese trading house Mitsui & Co says it will spend over $1.2 billion to help increase shipments of iron ore produced by a joint venture with Rio Tinto Ltd (ASX:RIO). The investment will see iron ore shipments rise from 80 million tonnes a year to 133 million tonnes per annum. The investment will also expand a port in Cape Lambert in Western Australia, a port used to ship iron ore produced at the Robe River joint venture. Rio owns 53 per cent of the venture and Mitsui 33 per cent. For the half year ended 30 June 2010, Rio reported a net profit of $7.3 billion.
Shares in Telstra Ltd (ASX:TLS) closed steady on Wednesday at $2.77. Telstra says it expects a shareholder vote on its $11 billion deal for the national broadband network to be held in the middle of 2011. Sources close to the deal told The Australian that Telstra was hoping to complete the deal by January 26, in time for the telco giant’s half-yearly report, due out in February. The company says the next steps for the deal include finalising definitive arrangements to implement the government’s policy reforms and the passage of legislation that will set out the regulation and ownership rules for NBN. For the year ended 30 June 2010, Telstra generated a net profit of $3.9 billion.
Commodities: Gold is down $1.40 to $US1,387 an ounce for the February contract on Comex, silver is down $0.01 to $29.38 for March and copper is flat at $4.28 a pound. Oil is up $0.66 at $US90.48 a barrel for February light crude in New York.
