The Australian share market is tipped for a flat start after US stocks had a mixed session despite the US Federal Reserve saying the central bank would maintain its massive $US85 billion-per-month stimulus program.
The Fed says it still needs to see improved US economic growth and employment figures before pulling back on bond buying.
US markets were also digesting mixed economic news.
US economic news
Second-quarter GDP grew 1.7 per cent. That was above the 1.1 per cent expected by analysts but the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1 per cent - down from 1.8 per cent.
Analysts were disappointed by the pace of growth, as they were expecting higher growth figures given the amount of money being injected into the economy.
Currencies
The Australian dollar dipped below 90 US cents on that news from America. At 7:20AM the Aussie was buying $US89.77 cents, 59.05 Pence Sterling, 87.8 Yen and 67.5 Euro cents.
Figures
The Dow Jones Industrial Average lost 21 points to close at 15,500, the S&P 500 was flat at 1,686 and the NASDAQ added 10 points to close at 3,626.
European markets were up: London’s FTSE jumped 50 points, Paris added 6 points and Frankfurt lifted 5 points.
Asian markets were mostly lower: Tokyo’s Nikkei dropped 202 points, Hong Kong’s Hang Seng dipped by 70 points, and China’s Shanghai Composite added 4 points.
The Australian share market finished in positive terriotry on the last day of July. The S&P/ASX 200 index closed 5 points up to finish at 5,052. For the month, the local market jumped 249.41 points, or 5.2 per cent.
On the futures market the SPI is 2 points higher.
Economic news
The Australian Bureau of Statistics will release its international trade price indexes for the June quarter, the Australian Industry Group will put out its performance of manufacturing index for July, NAB will release its online retail sales index for June and the HIA New home sales for June.
Company news
Transurban Group
(ASX:TCL) will release its full year results today. The earnings report comes a few weeks after the toll road operator announced strong traffic growth across its portfolio, with statutory revenue lifting 4.7 per cent to just over $800 million. Shares in Transurban gained 0.44 per cent yesterday to close at $6.78.
Alacer Gold Corp
(ASX:AQG) has announced a $412 million asset write-down amid plunging gold prices. The miner has flagged losses for its two Australian mines located around Kalgoorlie, which are for sale. Shares in Alacer lifted 1.81 per cent yesterday to close at $2.81.
Commodities
Gold is down $11.60 to $US1,312 an ounce for the August contract on Comex. Silver is down $0.05 to $19.63 for September. Copper is up $0.08 at $3.12 a pound. Oil is up $1.22 at US$104.30 a barrel for August light crude in New York.
