The Australian share market is expected to take Wall Street’s lead to push marginally higher at the open, but economic growth figures from China will likely be the big market mover today.
China economic news
China’s second-quarter growth will be out today and it’s expected to show the slowing of the economy has continued, but analysts have been relieved to hear assurances from China’s Premier that growth will not be allowed to fall much further.
The consensus forecast among China analysts tips a growth rate of 1.8 per cent for the quarter, bringing annual growth to 7.5 per cent, down from 7.7 per cent in March.
Currencies
And it was news out of China that sent the Aussie dollar lower over the weekend. It tumbled by one US cent after the People's Bank of China said a short-term jump in interest rates would not hurt the economy. At 7:15AM the Australian dollar was buying $US90.76 cents, 60.06 Pence Sterling, 90.19 Yen and 69.43 Euro cents.
Figures
Wall Street was in positive territory. The Dow Jones Industrial Averagegained 3 points to close at 15,464, the S&P500 added 5 points to close at 1,680 and the Nasdaq lifted 22 points to close at 3,600.
European markets were mixed: London’s FTSE added 2 points, Paris lost 14 points and Frankfurt gained 54 points.
Asian markets were also a mixed bag: Tokyo’s Nikkei added 34 points, Hong Kong’s Hang Seng lost 160 points, and China’s Shanghai Composite dropped 34 points.
The Australian share market finished last week on a high note. The S&P/ASX 200 index closed 8 points higher on Friday, extending the weekly gain of 132 points to finish at 4,974.On the futures market the SPI is 14 points higher.
Economic news
The Australian Bureau of Statistics will release its new motor vehicle sales data for June today as well as lending finance figures for May.
Company news
Australia and New Zealand Banking Group
(ASX:ANZ) has left interest rates unchanged for the next month. The bank decided to leave its standard variable mortgage rate at 6.13 per cent at its July rate review meeting, after the Reserve Bank of Australia also kept the cash rate on hold at its July board meeting. Shares in ANZ dipped 0.9 per cent to close at $28.72 on Friday.
Rio Tinto Limited
(ASX:RIO) says royalties and growing uncertainty in the regulatory environment will dry up investment in Australia's coal sector, according to media reports. Rio energy chief executive Harry Kenyon-Slaney says politicians should better understand the effect of taxes, wage rises, infrastructure charges and extra regulation on the coal industry. He reportedlysays the regulatory environment has dramatically diminished the industry’s confidence to invest. Shares in Rio lifted 0.77 per cent to close at $54.74.
Commodities Gold is up $1.20 to $US1,277.60 an ounce for the August contract on Comex. Silver is down $0.16 to $19.79 for September. Copper is down $0.04 at $3.16 a pound. Oil is up $1.04 at US$106 a barrel for August light crude in New York.
