The SPI is pointing to a slightly higher start for the Australian share market following a flat finish on Wall Street but mainly positive leads from Europe and Asia. Gains look to be fuelled on strength in commodities after Goldman Sachs' recommendation.
US economic news: The Census Bureau reported that new home sales increased for the second consecutive month, while still remaining at historically low levels. In April new home sale grew 7.3 per cent from the month before to an annual rate of 323,000 units, but still 23.1 per cent down from April 2010.
The figures: On Tuesday, the Dow Jones Industrial Average dropped 25 points to close at 12,356, the S&P500 eased 1 point to close at 1,316 and the NASDAQ lost 13 points to close at 2,746.
European stocks closed higher: London’s FTSE up 23 points, Paris up 10 and Frankfurt was up 29 points.
Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 20, Tokyo Nikkei was up 17 and China’s Shanghai Composite was down 8.
The Australian share market finished lower on Tuesday: The S&P/ASX 200 Index lost 14 points to close at 4,629. On the futures market the SPI is currently 3 points higher.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0562 US cents, 65.26 Pence Sterling, 86.52 Yen and 74.86 Euro cents.
In economic news: Due out today is the Australian Bureau of Statistics construction work done for March and also the Westpac-Melbourne Institute leading indexes of economic activity for March.
Company news: Yesterday shares in BHP Billiton Ltd (ASX:BHP) dipped 0.12 per cent to close at $43.24. BHP Billiton has been struck with class actions in the US claiming that the global miner is causing water poisoning, soil and air polluting and earthquakes, through its extraction methods on a recently acquired shale gas business. According to Fairfax Media, Arkansas landowners have hit BHP's Houston-based petroleum arm and three other gas producers with legal action for allegedly failing to meet safety and environmental requirements at the $US4.75 billion shale gas facility. BHP has not commented as yet, but the report says the miner is planning to inject as much as $US1 billion a year to boost production at the giant gasfield. In the first six months of its 2011 financial year, BHP Billiton posted a net profit of $10.5 billion.
On Tuesday Leighton Holdings Ltd (ASX:LEI) ended the day 0.76 per cent down at $23.58. The chief of Leighton Holdings, David Stewart, has hosed down talk of any animosity between him and his predecessor, Wal King. Mr Stewart claimed yesterday he wouldn’t be where he is without the support of Mr King. The comments come after Mr Stewart took the top job at the beginning of the year, and amid speculation that Mr King could score a board seat at Leighton’s indirect parent company. In the six months to 31 December 2010, Leighton Holdings generated a net profit of $218 million.
Ex-dividends: The only company going ex-dividend today is Marbletrend Group with a $0.005 fully franked dividend. Coming up tomorrow are Freedom Nutritional Products, Orica and SP AusNet.
Commodities: Gold is up $7.90 to $US1,523 an ounce for the June contract on Comex, silver is up $1.22 to $36.13 for July and copper is up $0.02 at $4.01 a pound. Oil is up $1.89 at $99.59 a barrel for July light crude in New York.
