The Australian share market is set to tread water in early trade after world markets posted modest gains, with investors waiting for news from the US Federal Reserve about plans for the massive stimulus program’s future.
Figures
Wall Street was fairly flat: The Dow Jones Industrial Average lost 1 point to close at 15,521, the S&P 500 added 1 point to close at 1,686 and the NASDAQ lifted 17 points to close at 3,616.
European markets made small gains: London’s FTSE added 11 points, Paris was up by 18 points and Frankfurt lifted by 12 points.
Asian markets made strong gains as traders made the most of the previous day’s losses with bargain buying: Tokyo’s Nikkei jumped 209 points, Hong Kong’s Hang Seng gained 104 points, and China’s Shanghai Composite added 14 points.
The Australian share market finished yesterday’s session flat, coming back from session lows after RBA Governor Glenn Stevens hinted another rate cut may be on the cards. The S&P/ASX 200 index closed 1 point up to finish at 5,047.
On the futures market the SPI is 7 points higher.
Currencies
The Australian dollar has regained a bit of ground after it lost almost two US cents yesterday following the release of weak building approvals data and that hint from RBA governor Glenn Stevens about a cash rate cut. At 7:20AM the Aussie was buying $US90.67 cents, 59.51 Pence Sterling, 88.96 Yen and 68.36 Euro cents.
Economic news
The RBA will release financial aggregates data for June today.
Company news
Origin Energy Limited
(ASX:ORG) will release its fourth quarter production report to the market. The announcement comes just days after the company began production at its offshore Geographe gas field in the Bass Strait. Shares in Origin Energy dipped 0.25 per cent yesterday to close at $11.92.
Paladin Energy Limited
(ASX:PDN) will put out its June quarter report today. It comes after the company announced it was on track to meet its full-year production guidance for fiscal 2013. Shares in Paladin lifted 4.84 per cent yesterday to close at 97.5 cents.
Ex-dividends RHG Limited
(ASX:RHG) will pay 3 cents per share fully franked
Singapore Telecommunications Limited
(ASX:SGT) will pay 8.5 cents per share unfranked.
Commodities
Gold is down $4.40 to $US1,324 an ounce for the August contract on Comex. Silver is down $0.18 to $19.68 for September. Copper is down $0.07 at $3.04 a pound. Oil is down $1.47 at US$103.08 a barrel for August light crude in New York.
