The Australian share market is tipped to stay in positive territory today, following strong leads from the US, with investors buoyed by Alcoa’s results in the kick off to earnings season.
Global economic news
The optimism overshadowed news from the International Monetary Fund, which lowered its global growth forecast for 2013 to 3.1 per cent. That was down from the April forecast of 3.3 per cent. The IMF warned China and other emerging economic powers now face new risks, including the possibility of a longer growth slowdown.
Currencies
The Australian dollar is marginally weaker on that news from the IMF. At 7:15AM the Aussie was buying $US91.77 cents, 61.74 Pence Sterling, 92.84 Yen and 71.78 Euro cents.
Figures
Wall Street was cheered by a better than expected earnings report from Alcoa: The Dow Jones Industrial Average gained 76 points to close at 15,300, the S&P 500 added 12 points to close at 1,652 and the NASDAQ rose 19 points to close at 3,504.
European markets followed suit: London’s FTSE jumped 63 points, Paris added 20 points and Frankfurt gained 89 points.
Asian markets rebounded on that news from Wall Street and Chinese shares finished a choppy session higher amid data showing an increase in consumer prices: Tokyo’s Nikkei soared by 364 points, Hong Kong’s Hang Seng added 101 points, and China’s Shanghai Composite lifted by 7 points.
The Australian share market closed 1.5 per cent stronger yesterday, shrugging off weak business conditions data to win back the previous day’s losses. The S&P/ASX 200 index closed 72 points up to finish at 4,882.
On the futures market the SPI is 17 points higher.
Economic news
The Westpac Melbourne Institute will put out its Survey of Consumer Sentiment.
Company news Transurban Group
(ASX:TCL) will release its third quarter traffic numbers today.
Meantime -
Rio Tinto Limited
(ASX:RIO) has launched the first shipment of copper-concentrate from the $US6.2 billion Oyu Tolgoi mining project, after a number of delays. Rio had forecast it could start exporting by the end of June if it could settle a dispute with the Mongolian government on costs and development of the mine. Shares in Rio lifted 0.77 per cent yesterday to close at $52.04.
Nufarm Limited
(ASX:NUF) Chairman Donald McGauchie says Darwin should be transformed into an export hub for fresh produce to go to Indonesia. Mr McGauchie says Prime Minister Kevin Rudd's trip to Indonesia boosted the outlook for the live cattle export trade and the lower Australian dollar has highlighted the need to improve food export infrastructure. Shares in Nufarm dropped 0.88 per cent yesterday to close at $4.53.
Commodities
Gold is up $11 to $US1,246 an ounce for the August contract on Comex. Silver is up $0.10 to $19.14 for September. Copper is down $0.04 at $3.06 a pound. Oil is up $0.39 at US$103.53 a barrel for August light crude in New York.
