Outlook: Aus shares tipped to rise

Market Reports

The Australian market looks tipped to rise after Wall Street edged higher on the last day of a turbulent month. US stocks firmed as investors digested a series of economic reports ahead of Friday’s key August jobs report.   

US economic news

Consultants Challenger, Gray & Christmas showed that the number of planned job cuts dropped 23 per cent in August, this came after three straight months of job cuts rising.  

Payroll processor ADP reported that private sector payrolls increased by 91,000 in August, coming in below expectations and down from the month before.

The Commerce Department revealed a 2.4 per cent rise in June factory orders, coming in higher than an expected fall of 1 per cent.

The Chicago purchasing managers index eased to a read of 56.5 in July, from 58.8 in June. The latest figure came in above expectations.

Figures

On Wednesday, the Dow Jones Industrial Average gained 54 points to close at 11,614, the S&P500 added 6 points to close at 1,219 and the NASDAQ lifted 3 points to close at 2,579.

European stocks closed higher: London’s FTSE was up 126 points, Paris was up 97 and Frankfurt was up 141.

Asian markets, stocks were higher: Hong Kong’s Hang Seng rose 331, Tokyo Nikkei was up 1 point and China’s Shanghai Composite was up almost 1 point.
 
On Wednesday, the Australian share market ended a choppy day on positive ground: The S&P/ASX 200 Index closed 27 points higher at 4,297. On the futures market the SPI is 30 points stronger.
 
Currencies

The Australian Dollar at 7:40AM was buying $US1.07 cents, 65.85 Pence Sterling, 81.98 Yen and 74.4 Euro cents.

Economic news

Due out today: The Australian Bureau of Statistics private new capital expenditure, expected expenditure data for the June quarter and retail trade data for the month of July. From the Australian Industry Group and Pricewaterhouse Coopers, the performance of manufacturing index for August. From the Reserve Bank of Australia, the index of commodity prices for August.

Company news

Yesterday shares in Leighton Holdings Limited (ASX:LEI) closed 0.1 per cent lower at $20.28. Shareholders will today slap property group Leighton Holdings with a $400 million class action, that is according to Fairfax Media. The class action reportedly related to Leighton’s handing of profit downgrades and write-downs on key projects and will be launched by Maurice Blackburn. Fairfax says that Leighton shareholders allege that they were misled and the company breached the continuous-disclosure rules in the timing of its announcement of cost blowouts and project delays, resulting in a dramatic share price decline. Last month Leighton Holdings said it had swung from a full year profit to a net loss of $406 million.

On Wednesday shares in Centro Properties Group (ASX:CNP) fell 6.98 per cent, finishing the day at $0.04. That was after the Federal Court fined a former CEO of the property group and banned its CFO from management for two years for breaches of corporate law. However, shareholder groups have slammed the Court for not imposing penalties on six non-executive directors failed to notice multi-billions of dollars worth of liabilities in Centro’s 2006-07 accounts. In a statement to the ASX Centro says it notes the ruling and will now be focused on the critical task of restructuring the business. In the 2011 financial year Centro Properties Group posted profit of $2.8 billion.

Ex-dividends

Fifteen companies are going ex-dividend today: Ausenco, APN News and Media, Brookfield Prime Property, Challenger, Foster’s Group, Gazal Corporation, IAG, IOOF Holdings, Katana Capital, Sonic Healthcare, Select Harvests, Servcorp, Treasury Group, Tatts Group, Treasury Wine Estates.

Commodities

Gold is up $1.90 to $US1,831 an ounce for the December contract on Comex. Silver is up $0.30 cents to $41.70 for September. Copper is up 6 cents at $4.19 a pound. Oil is down $0.09 at $88.81 a barrel for October light crude in New York.


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