As many Australian investors return from a long weekend the local bourse is eyeing gains ahead of the Reserve Bank of Australia’s monthly interest rate decision this afternoon. US stocks pulled back from early gains on Monday after comments from Federal Reserve chairman Ben Bernanke overshadowed upbeat manufacturing data.
US economic news
The Institute for Supply Management's manufacturing index rose to 51.5 in September from 49.6 the month before. It was the first time in four months the index rose above 50, indicating expansion.
Figures
Wall Street started October mixed: The Dow Jones Industrial Average added 78 points to close at 13,515, the S&P500 added 4 points to close at 1,444 and the Nasdaq lost 3 points to close at 3,114.
European markets started October higher: London’s FTSE added 78 points, Paris added 80 points and Frankfurt added 111 points.
Asian markets started October mixed: Hong Kong’s Hang Seng added 78 points, Tokyo’s Nikkei lost 74 and China’s Shanghai Composite added 30 points.
The Australian share market retreated from a strong open to post a steady start to October: The S&P/ASX 200 Index added 2 points on Monday to finish at 4,389. On the futures market the SPI is 19 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.036 cents, 64.28 Pence Sterling, 80.87 Yen and 80.44 Euro cents.
Economic news due out today
Reserve Bank of Australia: October interest rate decision and September index of commodity prices
Company news Fortescue Metals Group Limited’s
(ASX:FMG) founder and major shareholder Andrew Forrest will be in the spotlight today when the High Court rules on whether the iron ore miner misled investors about company developments in 2004. Mr Forrest could be restricted from acting as a company director if found guilty of breaching continuous disclosure laws. Separately ratings agency Standard & Poor's yesterday cut its credit rating on Fortescue's unsecured debt and reaffirmed its concerns about weaker iron ore prices. Shares in Fortescue Metals Group firmed 0.29 per cent on Monday to end at $3.50.
Despite more delays Origin Energy Limited’s
(ASX:ORG) 46.25 per cent owned BassGas project off Victoria will start to wrap up final testing this week ahead of production. Joint venture partner AWE Limited
(ASX:AWE), with a 42.5 per cent interest, has attributed weather conditions for the delays. Shares in Origin Energy rose 0.53 per cent on Monday to end at $11.38.
Ex dividends today
Katana Capital Limited
(ASX:KAT) with a 1 cent unfranked dividend
Mount Gibson Iron Limited
(ASX:MGX) with a 2 cent unfranked dividend
Reece Australia Limited
(ASX:REH) with a 40 cent fully franked dividend
Ex dividends tomorrow
Clearview Wealth Limited
(ASX:CVW) with a 2.2 cent unfranked dividend
David Jones Limited
(ASX:DJS) with a 7 cent fully franked dividend
McPherson's Limited
(ASX:MCP) with a 7 cent fully franked dividend
Nick Scali Limited
(ASX:NCK) with a 3.5 cent fully franked dividend
Commodities
Gold is up $9.40 to $US1,783 an ounce for the December contract on Comex.
Silver is up $0.37 to $34.95 for December.
Copper is up $0.03 at $3.79 a pound.
Oil is up $0.29 at $US92.48 a barrel for November light crude in New York.
