After advancing on the back of the Reserve Bank of Australia’s interest rate cut yesterday, the SPI is pointing to a positive start for the Australian share market despite soft offshore leads. US and European stocks were weighed down by European debt woes amid speculation Spain may request a bailout.
Figures
Wall Street ended mixed on Tuesday: The Dow Jones Industrial Average lost 33 points to close at 13,482, the S&P500 added 1 point to close at 1,446 and the Nasdaq added 7 points to close at 3,120.
European markets finished lower on Tuesday: London’s FTSE lost 11 points, Paris lost 21 points and Frankfurt lost 21 points.
Asian markets closed mixed on Tuesday: Hong Kong’s Hang Seng added 78 points, Tokyo’s Nikkei lost 10 and China’s Shanghai Composite added 30 points.
The Australian share market advanced 1 per cent on Tuesday, closing at session highs: The S&P/ASX 200 Index gained 44 points to finish at 4,433. On the futures market the SPI is 17 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.026 cents, 63.65 Pence Sterling, 80.25 Yen and 79.5 Euro cents.
Economic news due out today Australian Bureau of Statistics: International trade in goods and services data for August
Australian Industry Group and Commonwealth Bank of Australia
(ASX:CBA): Performance of Services Index (PSI) for September
Housing Industry Association: New home sales figures for August
Company news Cochlear Limited
(ASX:COH) has reportedly scored a $100 million healthcare contract with the Chinese government and is understood to be bidding on a the next stage of a five year tender. According to Fairfax Media the original contract was awarded in May but the hearing device manufacturer did not announce it. The report says the new tender is valued at $600 million and that Cochlear has neither affirmed or denied the figures obtained. Shares in Cochlear rose 0.47 per cent on Tuesday to close at $68.66.
Lend Lease Group
(ASX:LLC) has reportedly inked a joint venture agreement with a privately-held Malaysian property developer. According to News Corporation the Australian construction company will be working as part of a joint venture to build a $1.3 billion regional retail centre, office, hotel and residences in Malaysia. Lend Lease has not as yet commented on the report. Shares in Lend Lease Group gained 0.77 per cent on Tuesday to close at $7.85.
Ex dividends today
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
The price of gold is down $7.70 to $US1,775 an ounce for the December contract on Comex.
Silver is down $0.30 to $34.66 for December.
Copper is up $0.01 at $3.79 a pound.
Oil is down $0.59 at $US91.89 a barrel for November light crude in New York.
