The Australian share market looks set for a steady opening after announcements of spending cuts out of Spain and the Chinese central bank’s $56 billion injection into money markets moderately lifted offshore stocks.
US economic news
The commerce department has released its second quarter Gross Domestic Product estimate, with economy growth of 1.3 per cent falling well below expectations of 1.7 per cent and down from first quarter growth of 2 per cent. The sluggish result has been attributed to a slide in fixed investment and durable goods consumption.
In an effort to help growth, boost employment and lower interest rates, the US central bank announced a bond buying program valued at $US40 billion dollars monthly.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 73 points to close at 13,486, the S&P500 added 14 points to close at 1,447 and the Nasdaq is up 43 points to close at 3,137.
European markets closed up: London’s FTSE is 11 points higher, Paris gained 24 and Frankfurt added 14 points.
Asian markets also closed up:Hong Kong’s Hang Seng added 235 points, Tokyo’s Nikkei gained 43 and China’s Shanghai Composite is up 52 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 23 points up and finished at 4,384. On the futures market the SPI is 2 points up.
Currencies
The Australian Dollar at 7:30AM was buying $US1.044 cents, 64.36 Pence Sterling, 81.09 Yen and 80.91 Euro cents.
Economic news
Due out later today from the Reserve bank of Australia is its August financial aggregates report.
Company news
Aquila Resources Limited (ASX:AQA) is on the verge of ending an ongoing dispute with Brazilian joint venture partner Vale over the value of a 24.5 per cent stake in the Belvedere coal project in Queensland. The two parties will finalise the fair market value of Aquila's stake via the appointment of an investment banker, who will make a final determination of the fair market value. The resources explorer intends to direct proceeds from the stakes sale towards its $5.8 billion West Pilbara Iron Ore joint venture. Shares in Aquila Resources closed steady yesterday at $2.65.
Asciano Limited’s (ASX:AIO) Patrick operations at the Port of Hastings in Victoria are reportedly set to be closed by the company. The rail freight and ports operator distributed a memo to port staff advising of a winding back in its presence at the port in November, according to reports. The move follows yesterdays import restrictions imposed at Patrick’s Port Botany operation and will constitute a substantial hurdle to the Victorian state government's expansion plans for the site. Shares in Asciano closed 0.91 per cent lower yesterday at $4.35
Commodities
Gold is up $26.90 to $US1,780.50 an ounce for the December contract on Comex. Silver is up $0.73 to $34.67 for December. Copper is up $0.03 at $3.74 a pound. Oil is up $1.87 at US$92.21 a barrel for November light crude in New York.
Ex-dividends
AUCK AIRPT FPO NZ (ASX:AIA) with a 4.8286 cent dividend unfranked
ARB Corporation Limited (ASX:ARP) with a 14 cent dividend fully franked
Austbrokers Holdings Limited (ASX:AUB) with a 21.5 cent dividend fully franked
Collection House Limited (ASX:CLH) with a 3.2 cent dividend fully franked
Cromwell Group (ASX:CMW) with a 1.81 cent dividend unfranked
Cryosite Limited (ASX:CTE) with a 0.5 cent dividend unfranked
Cedar Woods Properties Limited (ASX:CWP) with a 14 cent dividend fully franked
M2 Telecommunications Group Limited (ASX:MTU) with a 9 cent dividend fully franked
1300 Smiles Limited (ASX:ONT) with a 9.2 cent dividend fully franked
Sims Metal Management Ltd (ASX:SGM) with a 10 cent dividend unfranked
SMS Management & Technology Limited (ASX:SMX) with a 17 cent dividend fully franked
Webster Limited (ASX:WBA) with a 1.5 cent dividend fully franked
WHK Group Limited (ASX:WHG) with a 4 cent dividend fully franked
