The Australian share market looks set to open slightly higher after US stocks closed mixed in response to an economic report that showed manufacturing activity had contracted. Australian investors will also await the RBA’s interest rate decision, with many expecting rates to remain unchanged.
US economic news
Manufacturing activity has come in lower than expected, contracting for the first time in almost three years. The institute for Supply Management showed the Manufacturing Index fell to 49.7 in June down from 53.5 in May. A reading below 50 indicates contraction in the sector. US construction spending in May has come in above expectations. The Commerce Department reported a 0.7 per cent increase in construction spending compared to the same time last year, signifying an improvement in the housing market.
Figures
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 9 points to close at 12,871, the S&P500 added 3 points to close at 1,366 and the Nasdaq added 16 points to close at 2,951.
European markets closed up: London’s FTSE gained 69 points, Paris was up 44 and Frankfurt added 80 points.
Asian markets closed mixed: Hong Kong’s Hang Seng added 416 points, Tokyo’s Nikkei lost 3 and China’s Shanghai Composite added 0.68 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 38 points up to finish at 4,133. On the futures market the SPI is 15 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.025, 65.33 Pence Sterling, 81.51 Yen and 81.51 Euro cents.
Economic news
Due out today from the Reserve Bank of Australia is their monthly interest rate decision. Also scheduled today, the Australian Bureau of Statistics will release building approvals for May.
Stocks to watch
Platinum Australia Limited (ASX:PLA) has been placed into administration following a drop in platinum prices and operational problems at its Smokey Hills mine in South Africa. The administrator says the company "will utilise the administration process to restructure its affairs, consolidate its position and to eliminate legacy issues." Shares in Platinum last traded at $0.067.
NIB Holdings Limited (ASX:NHF) has advised they have received about $91.5 million in premium revenue as policyholders prepaid their health insurance prior to June 30, to maintain the federal government’s rebate. The health insurer says the prepayments will have a positive impact on its net profit and will announce their full year results in August. Shares in NIB Holdings closed 1 per cent up yesterday at $1.51.
Ex-dividends
Clime Capital Limited (ASX:CAM)
Metcash Limited (ASX:MTS)
Commodities
Gold is down $6.50 to $US1,597.70 an ounce for the August contract on Comex.
Silver is down $0.11 to $27.50 for September.
Copper is down $0.03 at $3.47 a pound.
Oil is down $1.21 at US$83.75 a barrel for August light crude in New York.
