The SPI is pointing to a soft start for the Australian share market following a week-long rally. Wall Street finished higher overnight as corporate results rolled in, with the tech-heavy Nasdaq index getting a boost from Facebook Inc’s (NASDAQ:FB) strong quarterly earnings. However, gains across US indexes were capped by mixed results while European market dropped following disappointing company reports and outlooks.
US economic news
Initial claims for jobless benefits rose slightly more than expected last week. The Labor Department reported claims rose by 7,000 to 343,000 for the week ended on July 20, 2013.
New orders of durable goods rose beyond expectations. The Census Bureau reported the number jumped 4.2 per cent to $US244.5 billion in June 2013.
Figures
Wall Street gained on Thursday: The Dow Jones Industrial Average gained 13 points to close at 15,556, the S&P 500 gained 4 points to close at 1,690 and the Nasdaq gained 26 points to close at 3,605.
European markets were weighed down by disappointing earnings reports: London’s FTSE fell 33 points, Paris fell 7 points and Frankfurt fell 80 points.
Asian markets ended in the red yesterday: Hong Kong’s Hang Seng dropped 68 points, Tokyo’s Nikkei dropped 168 and China’s Shanghai Composite dropped 12 points.
Australian stocks staged a recovery yesterday to finish the session almost where they started: The S&P/ASX 200 Index ended 0.5 point higher on Thursday at 5,036. On the futures market the SPI is 1 point lower.
Currencies
The Australian Dollar at 7:20AM was buying 92.5 cents, 60.13 Pence Sterling, 91.86 Yen and 69.67 Euro cents.
Companies to watch
PanAust Limited
(ASX:PNA) June quarter report
Intrepid Mines Limited (ASX:IAU, TSE:IAU) first half results
Company news
ANZ Banking Group
(ASX:ANZ) has reportedly agreed to inject $US1 billion in bridging finance for Gina Rinehart’s Roy Hill iron ore project in Western Australia.
According to media reports the bank has lent the funds to Rinehart’s company, Hancock Prospecting, in the form of a commercial loan. The deal has been labelled as risky because the bank’s only collateral would be a partially built project if the funding doesn’t come through. Shares in ANZ Banking Group firmed 0.48 per cent on Thursday to end at $29.12.
Stockland
(ASX:SGP) has poached a new chief financial officer from Transfield Services Limited
(ASX:TSE).
The property developer has appointed Tiernan O'Rourke to the role, replacing Tim Foster from October. The news comes as Stockland continues its management shake-up and less than one month after the company appointed two new executives to its executive committee. Shares in Stockland rose 2.2 per cent on Thursday to end at $3.71 before the announcement was made.
Commodities
Gold is up $9.10 to $US1,329 an ounce for the August contract on Comex.
Silver is up $0.13 to $20.15 for September.
Copper is up $0.01 at $3.19 a pound.
Oil is up $0.10 at US$105.49 a barrel for August light crude in New York.
