The SPI is pointing to a weaker start to the day for the Australian market. US markets ended a four day rally and lost ground following a cautious statement from the Federal Reserve that said the US recovery was slower than expected.
US economic news
In a widely expected move the Federal Reserve kept its key interest rate near zero. The central bank also confirmed it will end its $US600 billion stimulus program next week, as planned.
Figures
On Wednesday, the Dow Jones Industrial Average dropped 80 points to close at 12,110, the S&P500 lost 8 points to close at 1,287 and the NASDAQ fell 18 points to close at 2,669.
European stocks closed lower: London’s FTSE was down 2 points, Paris down 6 and Frankfurt was down 7 points.
To Asian markets and stocks were higher: Hong Kong’s Hang Seng was up 9, Tokyo Nikkei was up 170 and China’s Shanghai Composite was up 3 points.
The Australian share market gained 0.5 per cent on Wednesday. The S&P/ASX 200 Index rose 24 points to close at 4,533. On the futures market the SPI is down 19 points.
Currencies
The Australian Dollar at 7:40AM was buying 1.0573 US cents, 65.81 Pence Sterling, 84.99 Yen and 73.74 Euro cents.
Company news
Yesterday shares in Telstra Corporation Ltd (ASX:TLS) added 0.66 per cent to close at $3.03, and, look set for a boost among expectations that the company will today outline more details on its deal with the Federal Government to establish the National Broadband Network through an infrastructure-sharing agreement. Reports speculate Australia’s largest Telco could receive up to $11 billion over the next decade from the deal that has been two years in the making. The final agreement does still require shareholder approval. In the first half of the 2011 financial year Telstra generated a net profit of $1.2 billion.
On Wednesday shares in Woodside Petroleum Ltd (ASX:WPL) ended the day 0.46 per cent higher at $41.09. Protestors at Woodside’s proposed site for a $30 billion gas hub in Western Australia’s Kimberly have now entered their third week of blocking access to the site. Musician and activist John Butler is reportedly among the dozens of opponents to the liquefied natural gas plant whose blockade has prevented geotechnical work from being conducted. Yesterday Western Australian Premier Colin Barnett told ABC Radio that the protestors should move on now they have made their point and allow the lawful process to move ahead. Woodside Petroleum reported a net profit of $1.5 billion in the 2010 financial year.
Ex-dividends
Eight companies are going ex-dividend today, among them are G8 Education, iShares S&P Europe 350, iShares S&P Global Consumer Staples and iShares S&P Global Telecommunications. Among those coming tomorrow are Ardent Leisure, Aurora Absolute Return Fund and Australian Education Trust.
Commodities
Gold is up $7.00 to $US1,553 an ounce for the August contract on Comex, silver is up $0.36 to $36.74 for July and copper is flat at $4.09 a pound. Oil is up $1.24 at $95.41 a barrel for August light crude in New York.
