The Australian share market looks set for modest gains at the open after Wall Street bounced back from last week’s losses, despite poor earnings reports overnight.
US economic news
Existing home sales dipped slightly in March, but were at much stronger levels than a year ago.
The annual sales rate in March came in at 492,000, down 0.6 per cent from February, but up 10.3 per cent from a year ago.
Figures
The Dow Jones Industrial Average gained 20 points to close at 14,567, the S&P 500 added 7 points to close at 1,563 and the NASDAQ gained 28 points to close at 3,234.
European markets were mixed: London’s FTSE lost 6 points, Paris was up by 0.17 points and Frankfurt gained 18 points.
Asian markets were also mixed: Hong Kong’s Hang Seng added 31 points, Tokyo’s Nikkei added 252 and China’s Shanghai Composite lost 3 points.
The Australian share market closed 0.7 per cent higher, aided by a recovery in mining stocks. The S&P/ASX 200 index closed 35 points up to finish at 4,967.
On the futures market the SPI is 13 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.027 cents, 67.25 Pence Sterling, 102.03 Yen and 78.68 Euro cents.
Company news
Rio Tinto Limited
(ASX:RIO) has lodged an appeal with the Supreme Court against a decision blocking it from expanding a coal mine. The mining giant’s subsidiary Coal & Allied is appealing against last week's NSW Land and Environment Court decision prohibiting the Mt Thorley Warkworth mine expansion. The court ruling overturned the NSW government’s approval of the project. Shares in Rio closed 1.47 per cent higher yesterday at $55.12.
Billabong International Limited
(ASX:BBG) will extend a 10-day exclusivity period granted to Sycamore Partners as takeover talks continue, according to media reports. Sycamore reportedly needs more time to obtain all of the key documents it has requested as it considers the potential deal with the surf wear retailer, which would be done with Billabong's former Americas chief Paul Naude. Shares in Billabong closed 1.01 per cent lower yesterday at $0.49.
Ex-dividend
Steamships Trading Company Limited
(ASX:SST) will pay $2.00 unfranked.
Commodities
Gold is up $25.60 to $US1,421 an ounce for the June contract on Comex. Silver is up by $0.36 to $23.32 for May. Copper is down $0.02 at $3.13 a pound. Oil is up $0.75 at $US88.76 a barrel for May light crude in New York.
