The Australian share market is tipped to rise after US stocks finished higher for the third straight day. Positive economic data lifted sentiment on Wall Street ahead of a key speech from Federal Reserve Chairman Ben Bernanke later this week. The price of gold plunged more than $US100, reversing its record run.
US economic news
The Commerce Department reported that orders for durable goods increased 4 per cent in July. The rise was higher than expected and followed a fall of 1.3 per cent the month before.
The Federal Housing Finance Agency index showed US house prices rose 0.9 per cent in June, beating expectations. House prices are 4.3 per cent lower on an annual basis.
Figures
On Wednesday the Dow Jones Industrial Average closed 144 points higher at 11,321, the S&P500 added 15 points to 1,178 and the NASDAQ gained 22 points to close at 2,468.
European stocks closed higher: London’s FTSE rose 76 points, Paris was up 55 and Frankfurt was up 149 points.
To Asian markets, stocks closed lower: Hong Kong’s Hang Seng fell 409, Tokyo Nikkei was down 93 and China’s Shanghai Composite was down 13 points.
The Australian share market slipped into the red on Wednesday: The S&P/ASX200 Index lost 6 points to close at 4,168. On the futures market the SPI is 43 points higher.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0472 US cents, 64 Pence Sterling, 80.61 Yen and 72.68 Euro cents.
Company news
Yesterday shares in BHP Billiton Limited (ASX:BHP) closed steady at $38.21 after which the global miner unveiled a full yet net profit of $22.56 billion, Australia’s highest-ever corporate profit. Increased demand and soaring commodity prices boosted BHP’s result above market expectations. The miner has maintained a bullish outlook for commodities, underpinned by demand and supply trends from emerging markets. While no special dividend or buyback was announced, BHP has raised its final dividend by 22 per cent to $US0.55, fully franked.
Shares in Minara Resources Limited (ASX:MRE) surged 36.72 per cent yesterday, closing at $0.875. That was after the Australian nickel miner received an offer from its largest shareholder, Glencore International Plc (LON:GLEN), to buy the 27 per cent interest of Minara that it does not already own. Glencore’s proposed off-market offer of $0.87 per share values the company at $1.017 billion and will close on October 10, 2011. Minara has advised shareholders to take no action before it considers the offer. In the 2010 calendar year Minara Resources generated a net profit of $58.3 million.
Ex-dividends
Five companies are going ex-dividend today: Hire Intelligence International, Logicamms, Mincor Resources, Miclyn Express Offshore and QBE Insurance Group. Coming up tomorrow: Blackmores and Cochlear.
Commodities
Gold is down $104 to $US1,757 an ounce for the December contract on Comex. Silver is down $3.13 cents to $39.16 for September. Copper is flat at $4.00 a pound. Oil is down $0.28 at $85.16 a barrel for October light crude in New York.
