With Wall Street closed for a public holiday the SPI is pointing to a slightly higher start for the Australian share market after European markets lifted on hopes for action from the European Central Bank later this week. Locally eyes will be on the Reserve Bank of Australia (RBA) when it reveals its monthly interest rate decision this afternoon, with the RBA widely expected to keep the key cash rate on hold at 3.5 per cent.
Figures
Wall Street was closed on Monday for the Labor Day public holiday but rose at the end of last week. Recapping Friday’s figures: The Dow Jones Industrial Average gained 90 points to close at 13,091, the S&P500 gained 7 points to close at 1,407 and the Nasdaq gained 18 points to close at 3,067.
European markets started the week higher: London’s FTSE gained 47 points, Paris gained 41 points and Frankfurt gained 44 points.
Asian markets closed mixed on Monday: Hong Kong’s Hang Seng added 77 points, Tokyo’s Nikkei lost 56 and China’s Shanghai Composite added 12 points.
The Australian share market recovered from earlier losses to start September 0.3 per cent higher: The S&P/ASX 200 Index added 14 points to close at 4,330. On the futures market the SPI is 9 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.025 cents, 64.52 Pence Sterling, 80.23 Yen and 81.39 Euro cents.
Economic news due out today
Reserve Bank of Australia: September interest rate decision
Australian Bureau of Statistics: June quarter current account balance data
Company news
UGL Limited
(ASX:UGL) is aiming to expand its property services division through targeting acquisitions. The engineering company says it has won more than $650 million of new work across its property division since acquiring real estate business DTZ last year. Looking ahead UGL sees opportunity to gain market share in Europe, continued momentum in Asia and an improving US outlook, in regards to its property order book. Shares in UGL firmed 0.86 per cent yesterday to end at $10.52.
Goodman Fielder Limited
(ASX:GFF) has outlined plans to slash costs, shed unprofitable products and boost advertising in an effort to reap greater returns. The refined strategy comes one week after the breads and spreads producer announced it has sold its Integro Business for $170 million to GrainCorp Limited
(ASX:GNC). Goodman Fielder last month booked a $147 million net loss for the 2012 financial year. Shares in Goodman Fielder dropped 0.96 per cent yesterday to finish at $0.515.
Commodities
Gold is up $7.00 to $US1,695 an ounce for the December contract on Comex.
Silver is up $0.69 to $32.13 for December.
Copper is up $0.02 at $3.48 a pound.
Oil is up $1.79 at $US97.05 a barrel for October light crude in New York.
Ex-dividends
Acrux Limited
(ASX:ACR) with an 8 cent final dividend
Altium Limited
(ASX:ALU) with a 5 cent dividend
Boart Longyear Limited
(ASX:BLY) with a 6.17 cent interim dividend
CSG Limited
(ASX:CSV) with a 20 cent final dividend
Iluka Resources Limited
(ASX:ILU) with a 25 cent interim dividend
Koon Holdings Limited
(ASX:KNH) with a 0.32 cent final dividend
Prime Media Group Limited
(ASX:PRT) with a 3.3 cent final dividend
