The Australian share market looks geared up to rebound this morning following Wall St staging a recovery, posting its biggest points gain this year. Investor sentiment was given a boost with strong corporate results and renewed optimism that President Obama could be nearing a deal to raise the nation’s debt ceiling.
US economic news
The Commerce Department reported that housing starts and building permits both rose more than expected in June. Housing starts jumped 14.6 per cent to a seasonally adjusted 629,000 units last month, representing a six-month high. Building permits in the US gained 2.5 per cent to a 624,000-unit pace.
Figures
On Wall Street: The Dow Jones Industrial Average advanced 202 points to close at 12,587, the S&P500 gained 21 points to close at 1,327 and the NASDAQ rose 61 points to close at 2,827.
European stocks closed higher: London’s FTSE up 37 points, Paris up 44 and Frankfurt was up 85 points.
To Asian markets, stocks were mixed Hong Kong’s Hang Seng was up 98, Tokyo Nikkei was down 85 and China’s Shanghai Composite was down 20 points.
The Australian share market finished lower on Tuesday: The S&P/ASX 200 Index eased 4 points to close at 4,468. While on the futures market the SPI is currently 49 points stronger.
Currencies
The Australian Dollar at 7:35AM was buying $1.073 US cents, 66.55 Pence Sterling, 84.94 Yen and 75.84 Euro cents.
Economic news
Due out today is Westpac and the Melbourne Institute's leading indexes of economic activity for July.
Company news
Yesterday shares BHP Billiton Limited (ASX:BHP) dipped 0.54 per cent to close at $42.62, ahead of the global miner’s production report for the June quarter due out today. Improved weather conditions and a ramp up of its operations in Western Australia are being credited for a likely boost in BHP’s production. The Australian Financial Review is tipping BHP will report having produced around 38.5 million tonnes of iron ore, which would represent a record amount. In the first half of its 2011 financial year, BHP Billiton reported a net profit of $10.5 billion.
On Tuesday shares in Woolworths Limited (ASX:WOW) slipped 0.47 per cent to close at $27.25, ahead of the supermarket giant’s fourth quarter sales results due out today. All eyes will be on how the company has weathered weakening consumer sentiment. A Goldman Sachs analyst has told Fairfax that Woolworths could post fourth-quarter sales of $12.3 billion, up around 6 per cent while full year sales could add 5 per cent to $54 billion. At the beginning of this year Woolworths cut its full year net profit guidance from up to 11 per cent growth to between 5 and 8 per cent growth. In the first half of its 2011 financial year Woolworths booked a net profit of $1.2 billion, its lowest in 12 years.
Ex-dividends
The only company going ex-dividend today is Mirrabooka Investments with a $0.06 fully franked dividend. Among those coming up next week are Count Plus and Cellnet Group.
Commodities
Gold is down $1.30 to $US1,601 an ounce for the August contract on Comex, silver is down $0.12 to $40.22 for September and copper is up $0.07 at $4.47 a pound. Oil is up $1.57 at $97.50 a barrel for August light crude in New York.
