The SPI is pointing to a positive start for the Australian share market. US markets were closed for the Independence Day national holiday. At home all eyes will be on the Reserve Bank’s interest rate decision this afternoon. The central bank is widely tipped to keep rates on hold.
Figures
European markets: Stocks started the week mixed in thin trade, London was up 28, Paris down 4 points and Frankfurt up 24 points.
Asian markets: Stocks closed higher, Hong Kong’s Hang Seng was up 372, Tokyo Nikkei was up 97 and China’s Shanghai Composite was up 53.
The Australian share market started the week 0.4 per cent higher: The S&P/ASX 200 Index added 20 points to close at 4,611. On the futures market the SPI is 18 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $1.0738 US cents, 66.75 Pence Sterling, 86.75 Yen and 73.86 Euro cents.
Economic news
Due out today is the Reserve Bank of Australia’s interest rate decision, the Australian Bureau of Statistics international trade in goods and services data for May and the Australian Industry Group/Commonwealth Bank Australian Performance of Services Index for June.
Company news
Shares in Virgin Blue Holdings Ltd (ASX:VBA) soared 10.53 per cent yesterday to close at $0.315, and shares in Qantas Airways Ltd (ASX:QAN) finished 6.49 per cent higher. Australia’s two largest airlines hit one-month highs in the first day of trade since Australian regulators grounded the domestic operations of budget airline Tiger Airways due to safety concerns. Tiger’s suspension represents around 5 per cent of Australia’s local capacity. In the first half of the 2011 financial year Virgin Blue recorded a net profit of $23.8 million.
Shares in BHP Billiton Ltd (ASX:BHP) firmed 0.57 per cent on Monday to close at $44.02. BHP could be preparing to launch an additional share buyback, analysts have told The Australian. According to the report a renewed capital management plan is imminent and expected to be announced when the global miner reports its half year results on August 24. At the end of last week BHP said it has completed its $US10 billion share buyback program six months earlier than scheduled. BHP reported a net profit of $10.5 billion in the second half of 2010.
Ex-dividends
Three companies are going ex-dividend today, they are Aneka Tambang, BioTech Capital and Clime Capital. Coming up later this week are Abacus Property Group and Trafalgar Corporate.
