The Australian share market looks set for a positive start to the day after Wall Street looked past Europe’s issues and gained on better than expected economic data. European markets were dragged lower by unfolding developments in the region, including data indicating the eurozone is sliding into recession and Italy’s 10-year bond yield again climbing above 7 per cent.
US economic news
The Commerce Department has reported retail sales increased 0.5 per cent in October, beating expectations of a 0.4 per cent rise but coming in lower than a rise of 1.1 per cent the month before.
The Empire State manufacturing index increased more than expected, coming in at 0.6 in November and rebounding from last month’s read of negative 8.5.
The US Bureau of Labor Statistics Producer Price Index for finished goods dipped less than expected, down 0.3 per cent in October, after a rise of 0.8 per cent the month before.
Figures
Wall Street finished higher on Tuesday: The Dow Jones Industrial Average added 17 points to close at 12,096, the S&P500 lifted 6 points to close at 1,258 and the Nasdaq gained 29 points to close at 2,686.
European stocks finished lower on Tuesday: London’s FTSE was down 2 points, Paris was down 60 points and Frankfurt was down 52 points.
To Asian markets, stocks closed mixed: Hong Kong’s Hang Seng was down 160 points, Tokyo Nikkei was down 62 and China’s Shanghai Composite added 1 point.
The Australian share market dipped 0.4 per cent on Tuesday: The S&P/ASX 200 Index lost 19 points to finish at 4,286. On the futures market the SPI is currently 15 points higher.
Currencies
The Australian Dollar at 8:40AM was buying $US1.0182, 64.37 Pence Sterling, 78.46 Yen and 75.23 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics, the labour price index for September. From Westpac and the Melbourne Institute, leading indexes of economic activity for November.
Company news
Yesterday shares in Rio Tinto Limited (ASX:RIO, NYSE:RIO, LSE:RIO) dropped 1.15 per cent, closing at $67.83. Rio’s joint venture partner in the $US10 billion Oyu Tolgoi mine in Mongolia, Ivanhoe Mines Limited (IVN:TSX, NYSE:IVN, NASDAQ:IVAN), has warned that the project will face delays if Mongolia and China fail to agree on a deal to secure power from China. Separately Fairfax Media has reported a verdict from Rio and Ivanhoe’s arbitration hearings is expected within weeks, in regards to their ownership dispute. Rio has a 49 per cent stake in Ivanhoe and is understood to be seeking a controlling interest after a preventing clause expires early 2012. In the first half of 2011 Rio Tinto posted a net profit of $7.5 billion.
On Tuesday shares in County Coal Limited (ASX:CCJ) advanced 25 per cent, finishing its first day of trade at $0.75. It was a solid debut on the Australian Securities Exchange for the coal exploration company, having listed at $0.40. The initial public offering raised $15 million and the company’s market value is about $37.5 million. County Coal is focused on thermal coal resources and projects in the US with two coal projects and options in other projects in the Powder River Basin.
Ex-dividends
The only company going ex-dividend today is Adelaide Managed Funds Asset Backed Yield Trust. Coming up tomorrow are Brickworks and Incitec Pivot.
Commodities
Gold is up $3.80 to $US1,782 an ounce for the December contract on Comex.
Silver is up $0.43 to $34.46.
Copper is up $0.014 at $3.50 a pound.
Oil is up $1.23 at $99.37 a barrel for November light crude in New York.
