Following one of the biggest one-day gains of the year the Australian share market looks to open slightly lower after receiving mixed leads. Wall St closed with little changed as local and European debt concerns cast a shadow over some healthy US corporate results.
US economic news
The National Association of Realtors has reported that existing home sales fell more than expected in June, dropping 0.8 per cent to an annual rate of 4.77 million.
Figures
On Wednesday, the Dow Jones Industrial Average eased 16 points to close at 12,572, the S&P500 close flat at 1,326 and the NASDAQ lost 12 points to close at 2,814.
European stocks closed higher: London’s FTSE up 64 points, Paris up 60 and Frankfurt was up 29 points.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 101, Tokyo Nikkei was up 116 and China’s Shanghai Composite was down 3 points.
The Australian share market surged 1.8 per cent on Wednesday: The S&P/ASX200 Index advanced 82 points to close at 4,550. On the futures market the SPI is 7 points lower.
Currencies
The Australian Dollar at 8:40AM was buying $1.0745 US cents, 66.53 Pence Sterling, 84.71 Yen and 75.57 Euro cents.
Economic news
Due out today is National Australia Bank’s quarterly business survey.
Company news
Yesterday shares in Commonwealth Bank of Australia (ASX:CBA) rose 2.06 per cent to close at $49.55. CBA will put the pressure on the Reserve Bank of Australia to ditch plans to put a cap on credit card surcharges, according to a report in The Australian. The RBA’s proposed reform is geared towards preventing merchants from charging customers more than the true cost of processing a credit card transaction. CBA is reportedly pitching an alternative plan that would mean merchants would be forced to charge customers based on individual credit card schemes, preventing merchants from adding a surcharge up to the capped level. Commonwealth Bank recorded a net profit of $3 billion in the last half of 2010.
On Wednesday shares in Paladin Energy Limited (ASX:PDN) closed steady at $2.37. Unprecedented wet weather and delays have been blamed for Paladin failing to reach its downgraded full-year production guidance. The uranium miner posted annual production of 5.694 million pounds of uranium oxide, coming in under the forecast 6 million pounds. Paladin has also cut its 2012 output guidance to between 7.4 to 7.9 million pounds. Paladin Energy booked a net loss of $33 million in the first six months of fiscal 2011.
Commodities
Gold is down $4.20 to $US1,596 an ounce for the August contract on Comex, silver is down $0.66 to $39.56 for September and copper is down $0.03 at $4.44 a pound. Oil is up $0.64 at $98.14 a barrel for August light crude in New York.
