The Australian share market looks set for cautious start to the day after Wall Street finished higher in choppy trade, amid concern over Europe’s sovereign debt situation that continues to weigh on global investors.
Figures
On Wall Street: The Dow Jones Industrial Average rose 45 points to close at 11,106. The S&P500 added 11 points to close at 1,173. The Nasdaq lifted 37 points to close at 2,532.
European stocks closed higher on Tuesday: London’s FTSE was up 45 points, Paris was up 40 and Frankfurt was up 94 points.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was closed, Tokyo Nikkei was up 81 and China’s Shanghai Composite was down 26 points.
The Australian share market closed 0.847 per cent higher on Tuesday: The S&P/ASX 200 Index gained 34 points to close at 4,073. While on the futures market the SPI is currently 3 points higher.
Currencies
The Australian Dollar at 7:40AM was buying $1.0317 US cents, 65.38 Pence Sterling, 79.38 Yen and 75.41 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics, dwelling unit commencements for the June quarter. From Westpac and the Melbourne Institute, their survey of consumer sentiment for September.
Company news
Yesterday shares in takeover target Sundance Resources Limited (ASX:SDL) fell 10.11 per cent to close at $0.40 after news broke that Australia’s corporate watchdog is investigating executives from the iron ore junior’s largest shareholder and suitor, Hanlong Mining, for alleged insider trading. Hanlong has since issued a statement advising the company itself is not under investigation and the executives that are under investigation will stand down from their positions. The credibility of Hanlong’s bids for both Sundance and Bannerman Resources Limited (ASX:BMN) has now been questioned, one year after Hanlong announced plans to become Australia’s "fourth force in iron ore". In the half year ended on 31 December 2010, Sundance Resources booked a net loss of $9.2 million.
Shares in Woolworths Limited (ASX:WOW) closed 0.74 per cent lower yesterday at $24.16. Woolworths is stepping up its expansion at home and eyeing growth in India, according to Fairfax, the supermarket giant has just purchased a retail component of a proposed shopping centre, south-east of Melbourne, that it plans to develop as part of a major mixed-use village. Another report says Woolies is looking to expand into India as early as next year, when the nation relaxes its direct foreign investment rules. Last month Woolworths posted a 5 per cent increase in its full year net profit, coming in at $2.1 billion.
Ex-dividends
The two companies that are going ex-dividend today are Adcorp with a $0.01 fully franked dividend and Prime Financial Group with a $0.01 fully franked dividend. Among those coming up tomorrow are Brambles, Carsales.com and Dicker Data.
Commodities
Gold is up $16.80 to $US1,830 an ounce for the December contract on Comex.
Silver is up $0.98 cents to $41.19.
Copper is steady at $3.97 a pound.
Oil is up $2.02 at $90.21 a barrel for October light crude in New York.
