The SPI is pointing to a positive start for the Australian share market after the US Federal Reserve announced it would keep interest rates unchanged, lifting all three indexes on Wall St to fresh multi-year highs and pushing the price of gold to a new record. At home the Australian dollar has jumped up again, rising over 108 US cents.
US economic news: America’s central bank announced it will keep interest rates at low levels for an extended period and, end its $US600 billion bond buying program, known as quantitative easing, in June 2011.
To the figures: On Wednesday, the Dow Jones Industrial Average climbed 96 points to close at 12,691, the S&P500 added 8 points to close at 1,356 and the NASDAQ gained 22 points to close at 2,870.
European stocks closed mixed: London’s FTSE down 1 point, Paris up 22 and Frankfurt was up 48.
To Asian markets, stocks were also mixed: Hong Kong’s Hang Seng was down 115, Tokyo Nikkei was up 133 and China’s Shanghai Composite was down 14.
The Australian share market started the trading week lower on Wednesday: The S&P/ASX 200 Index fell 41 points to close at 4,873. On the futures market the SPI is currently 37 points higher.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0869 US cents, 65.37 Pence Sterling, 89.38 Yen and 73.55 Euro cents.
Company news: Yesterday shares in CuDeco Ltd (ASX:CDU) jumped 18.12 per cent to close at $3.65, after the copper explorer announced a new offtake supply agreement for its Rocklands project near Cloncurry in Queensland. Hong Kong-based China Oceanwide International Holdings Co has agreed to buy a minimum 60 per cent of output from its Rocklands project for 20 years. China Oceanwide already holds 6.25 million shares in CuDeco and has agreed to subscribe for an additional 14.95 million shares at $3.80 per share, lifting its stake in CuDeco to 14.8 per cent. In the six months to 31 December 2010, CuDeco booked a net loss of $1.4 million.
On Wednesday shares in Santos Ltd (ASX:STO) fell 2.25 per cent to close at $15.61. Energy producer Santos has upped its interest in Eastern Star Gas Ltd (ASX:ESG) to over 20 per cent. According to the Australian Santos’ stake in the coal seam gas explorer has now grown from 19.99 per cent as at July 2009 to 20.97 per cent. However, as the increase was under 1 per cent the company was not obliged to inform the stock exchange. A Santos spokesperson has told the paper that the increase is not about a takeover, rather a partnership with Eastern Star to develop what Santos sees as Australia's next major coal-seam gas province. In the 2010 financial year Santos reported a net profit of $498 million.
Commodities: Gold is up $13.60 to $US1,517 an ounce for the June contract on Comex, silver is up $0.91 to $45.96 for May and copper is down $0.09 at $4.23 a pound. Oil is up $0.55 at $112.76 a barrel for June light crude in New York.
