The Australian share market looks to open higher after Wall Street snapped a three day losing streak. Despite disappointing economic data, US stocks firmed on the back of stronger commodity prices.
US economic news: The Commerce Department reported that new orders for durable goods, such as planes and cars, fell more than expected, dropping 3.6 per cent in April from the month before.
To the figures: On Wednesday, The Dow Jones Industrial Average rose 38 points to close at 12,395, the S&P500 added 4 points to close at 1,320 and the NASDAQ gained 15 points to close at 2,761.
European stocks closed higher: London’s FTSE up 12 points, Paris up 12 and Frankfurt was up 20 points.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was up 17, Tokyo Nikkei was down 54 and China’s Shanghai Composite was down 25.
The Australian share market fell to a 10-week low on Wednesday: The S&P/ASX 200 Index dropped 44 points to close at 4,585. On the futures market the SPI is 40 points higher.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0534 US cents, 64.73 Pence Sterling, 86.4 Yen and 74.79 Euro cents.
Economic news: Due out today is the Australian Bureau of Statistics private new capital expenditure and expected expenditure for the March quarter.
Company news: On Wednesday shares in Austar United Communications Ltd (ASX:AUN) ended the day 0.39 per cent lower at $1.26. After months of speculation, reports are circulating that region pay-TV company Austar is today expected to unveil Foxtel’s $2 billion takeover bid for a 54 per cent stake in the company owned by Liberty Global. Since March, Austar has denied three times that it has received any proposals from Foxtel. However, reports out this morning claim Austar is gearing up to update to the market before its annual meeting today. Liberty is understood to support the formal proposal price, believed to be upwards of $1.50 per share. In the 2010 financial year Austar reported a net profit of $99.65 million.
Yesterday shares in Telstra Corporation Ltd (ASX:TLS) fell 0.99 per cent to close at $2.99. Australia’s largest telecommunications company has confirmed that it is on track to meet its full year profit guidance. Chief financial officer John Stanhope yesterday said the telco’s focus on customer service and new growth businesses underpin its positive outlook and momentum. Earlier this month CEO David Thodey forecast flat sales revenue and a single-digit decline in earnings before interest, tax, depreciation and amortisation in the current financial year. In the first half of the 2011 financial year Telstra’s net profit fell 35.6 per cent to $1.2 billion.
Ex-dividends, three companies are going ex-dividend today: Freedom Nutritional Products with a $0.005 fully franked dividend, Orica with a $0.37, 48.64 per cent franked dividend and SP AusNet with a $0.04, 33.3 per cent franked dividend.
Commodities: Gold is up $3.40 to $US1,526 an ounce for the June contract on Comex, silver is up $1.51 to $37.64 for July and copper is up $0.09 at $4.11 a pound. Oil is up $1.73 at $101.32 a barrel for July light crude in New York.
