The Australian share market is tipped to open in positive territory after US stocks broke a three-day losing streak on stronger Chinese trade data and improving sentiment about the European economy.
Chinese trade data for July showed a trade surplus of $17.8 billion in July.
Currencies
The Australian dollar rose above 91 US cents for the first time in almost two weeks after the release of those strong Chinese international trade figures. At 7:20AM the Aussie was buying $US91.09 cents, 58.64 Pence Sterling, 88.1 Yen and 68.07 Euro cents.
US economic news
New claims for US unemployment insurance benefits edged higher last week from the previous period, but held to trend lower. Initial jobless claims totalled 333,000 last week, up from 328,000 the previous week. But the four-week moving average continued to push lower, to 335,000, compared to nearly 370,000 per week a year ago.
Figures
There was green on the screen at Wall Street: The Dow Jones Industrial Average gained 28 points to close at 15,498, the S&P 500 added 7 points to close at 1,697 and the NASDAQ lifted by 15 points to close at 3,669.
European markets pushed higher after Central Bank President Mario Draghi said the European economy appears to be stabilising: London’s FTSE gained 18 points, Paris was up 26 points and Frankfurt added 58 points.
Asian markets were mixed: Tokyo’s Nikkei lost 219 points, Hong Kong’s Hang Seng added 67 points, and China’s Shanghai Composite was 2 points lower.
The Australian share market advanced more than 1 per cent yesterday after local jobs data and strong Chinese trade data. The S&P/ASX 200 index soared 54 points to finish at 5,065. On the futures market the SPI is 19 points higher.
Economic news
The Reserve Bank of Australia will release its Statement on Monetary Policy today.
Company news
Tabcorp Holdings Limited
(ASX:TAH) is expected to reveal its full year results for fiscal 2013 today. Commentators say investors will be looking for clarity from management on Tabcorp’s growth prospects into next year, especially after the company incurred the cost of a levy applied to its Victorian gaming machines. Shares in Tabcorp surged 2.44 per cent yesterday to close at $3.36.
Rio Tinto Limited
(ASX:RIO) has not paid any mining tax to the Australian government, after pre-payments made in April were refunded by the tax office. News of Rio's mining tax refund came as the company revealed a $US4.2 billion underlying profit for the first six months of 2013. Shares in Rio lifted 1.5 per cent yesterday to close at $59.48.
Ex-dividend
Australian Foundation Investment Co Limited
(ASX:AFI) will pay 14 cents per share fully franked
Westfield Group
(ASX:WDC) will pay 25.5 cents per share unfranked
Westfield Retail Trust
(ASX:WRT) will pay 9.93 cents per share unfranked
Commodities
Gold is up $24.60 to $US1,310 an ounce for the December contract on Comex. Silver is up $0.69 to $20.19 for September. Copper is up $0.09 at $3.27 a pound. Oil is down $0.97 at US$103.40 a barrel for September light crude in New York.
