The Australian share market looks set to ease into today’s session with the SPI pointing down, after US stocks put in another tame performance overnight, despite positive signs in the US housing market, investors shifted their focus to oil prices which slid to a six week low.
US economic news
Existing home sales rose sharply for the second straight month according to the National Association of Realtors. August saw a 7.8 per cent jump. All regions showed a spike for the month.
August housing starts, including houses and apartment buildings, rose 2.3 per cent, to an annual rate of 750,000 according to the Commerce Department.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 13 points to close at 13,578, the S&P500 added 2 points to close at 1,461 and the Nasdaq was up by 5 points to close at 3,183.
European markets closed up: London’s FTSE gained 20 points, Paris added 19 and Frankfurt was up by 43 points.
Asian markets closed up Hong Kong’s Hang Seng added 240 points, Tokyo’s Nikkei gained 108 and China’s Shanghai Composite was up by 8 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 24 points up to finish at 4,418. On the futures market the SPI is 5 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US1.048, 64.62 Pence Sterling, 82.15 Yen and 80.33 Euro cents.
Economic news
Due out today from the Reserve Bank of Australia RBA is foreign exchange transactions for August and Commonwealth Bank’s business sales indicator for August.
Company news
Exco Resources
(ASX:EXS) has accepted Washington H. Soul Pattinson and Co. Limited's
(ASX:SOL) takeover offer worth about $95 million. The Australian copper and gold miner's board will recommend the offer to shareholders which was increased from 19 cents to 26.5 cents per share. Soul Pattinson, who already has a 19.9 per cent stake in Exco, pays royalties to the company from revenues generated from its copper project in Queensland. The revised offer requires a minimum of 90 per cent approval from shareholders. Shares in Exco Resources closed 24.39 per cent up yesterday at $0.255.
A Chief Executive at BHP Billiton
(ASX:BHP) says iron ore demand from China has eased by more than half and the beginning of the end of the first stage of economic development in China has began. The comments follow a cut in price forecasts for iron ore this week by the federal government's official resources forecaster. BHP has delayed about $65 billion worth of projects due to a soft commodity market. Shares in BHP closed 0.77 per cent up yesterday at $34.22.
Ex-dividends
Commodities
Gold is up $1.00 to $US1,772.70 an ounce for the December contract on Comex.
Silver is up $0.05 to $34.64 for December.
Copper is down $0.01 at $3.80 a pound.
Oil is down $0.14 at US$91.84 a barrel for October light crude in New York.
