The Australian share market looks set to open stronger after Wall St snapped a three day losing streak. Gains in the tech and financial sector drove US stocks higher, easing jitters over Greece’s debt situation ahead of a vote in the country for a proposed austerity package.
US economic news
The Commerce Department reported that personal income increased less that had been expected, up 0.3 per cent in May, after a 0.4 per cent increase the month before.
Figures
The Dow Jones Industrial Average started the week 109 points higher, closing at 12,044, the S&P500 added 12 points to 1,280 and the NASDAQ rose 35 points to close at 2,688.
European stocks closed mixed on Monday: London was up 25, Paris up 12 points and Frankfurt down 13 points.
To Asian markets and stocks were also mixed: Hong Kong’s Hang Seng was down 130, Tokyo Nikkei was down 100 and China’s Shanghai Composite was up 12.
The Australian share market started the week more than 1 per cent down: The S&P/ASX 200 Index dropped 46 points to close at 4,462. On the futures market the SPI is 49 points higher.
Currencies
The Australian Dollar at 7:25AM was buying $1.0447 US cents, 65.33 Pence Sterling, 84.49 Yen and 73.13 Euro cents.
Company news
Shares in Commonwealth Bank of Australia (ASX:CBA) lost 1.33 per cent on Monday and closed at $50.45. Heating up the battle for market share, CBA has lowered the interest rate for its ''no fee'' home loan, its latest mortgage product launched earlier this year. The bank has now cut the variable rate by 13 basis points to 7.11 per cent, representing an average saving of $27 per month. CBA says the new rate will automatically be applied to all new and existing "No Fee" home loans. In the six months to 31 December 2010, Commonwealth Bank recorded a net profit of $3 billion.
Shares in FerrAus Ltd (ASX:FRS) surged 23.44 per cent, ending the day at $0.79, after the iron ore developer yesterday recommended an off-market takeover bid from fellow miner Atlas Iron Ltd (ASX:AGO). Under the proposed two-step deal FerrAus would acquire Atlas' south-east Pilbara assets, after which Atlas would offer one of its shares for every four FerrAus shares, to acquire the company. The offer will be put to a shareholder vote on 17 August. In the first half of its 2011 financial year, FerrAus booked a net loss of $1.9 million.
Ex-dividends
The only company going ex-dividend today is Aberdeen Leaders with a $0.04 fully franked dividend. Coming up later this week are Graincorp and Viterra.
Commodities
Gold is down $4.50 to $US1,496 an ounce for the August contract on Comex, silver is down $1.05 to $33.58 for July and copper is down $0.05 at $4.05 a pound. Oil is down $0.55 at $90.61 a barrel for August light crude in New York.
