The Australian share market is set to open higher after US stocks gained following an improving read on US retail sales.
US economic news
The Commerce Department's monthly retail sales report came in lower than expected for July, with overall sales up just 0.2 per cent, but the June figure was revised sharply higher to 0.6 per cent, which was better than expected.
Currencies
The greenback was boosted by that news, pushing the Australian dollar lower. At 7:25AM the Aussie was buying $US91.1 cents, 58.98 Pence Sterling, 89.43 Yen and 68.69 Euro cents.
Figures
Wall Street was in positive territory: The Dow Jones Industrial Average gained 31 points to close at 15,451, the S&P 500 added 5 points to close at 1,694 and the NASDAQ lifted 14 points to close at 3,684.
European markets followed suit: London’s FTSE rose 38 points, Paris lifted by 21 points and Frankfurt jumped 57 points.
Asian markets soared. Japan's stock index posted solid gains on hopes for more monetary stimulus from the Bank of Japan following weaker than expected economic growth data. Tokyo’s Nikkei rallied by 348 points, Hong Kong’s Hang Seng added 270 points, and China’s Shanghai Composite gained 5 points.
The Australian share market ended yesterday’s session 1 per cent stronger as investors showed signs of confidence in the current earnings season. The S&P/ASX 200 index closed 49 points up to finish at 5,158. On the futures market the SPI is 17 points higher.
Economic news
The Australian Bureau of Statistics will release the wage price index for June quarter and the Westpac/Melbourne Institute Survey of Consumer Sentiment is also due out.
Company news
Commonwealth Bank of Australia
(ASX:CBA) is expected to deliver a record $7.6 billion full-year cash profit and may also reveal a special dividend today. Analysts are tipping CBA will beat its cash profit of $7.1 billion last year and may announce a 10 cent payout on top of a $1.96 dividend. Shares in CBA shot up almost one per cent (0.99 per cent) yesterday to close at $74.55.
Worleyparsons Limited
(ASX:WOR) will join the raft of companies reporting full year results today. Back in May, the group downgraded its earnings forecast amid softening demand for resource infrastructure and said it expects to report a net profit in the range of $320 to $340 million. Shares in Worleyparsons surged to 2.62 per cent yesterday to close at $21.90.
Other companies reporting today include Leighton Holdings Limited
(ASX:LEI), CSL Limited
(ASX:CSL), OZ Minerals Limited
(ASX:OZL), Primary Health Care Limited
(ASX:PRY) and Computershare Limited
(ASX:CPU).
Ex-dividend
Downer EDI Limited
(ASX:DOW) will pay 11 cents per share partially franked
GUD Holdings Limited
(ASX:GUD) will pay 36 cents per share fully franked
Rio Tinto Limited
(ASX:RIO) will pay 93 cents per share fully franked
ResMed Inc
(ASX:RMD) will pay 2.3 cents per share unfranked
Tabcorp Holdings Limited
(ASX:TAH) will pay 8 cents per share fully franked
Commodities
Gold is down $13.70 to $US1,321 an ounce for the December contract on Comex. Silver is flat at $21.34 for September. Copper is up $0.01 at $3.32 a pound. Oil prices rose on fresh oil supply disruptions in Libya and in anticipation of a bullish US oil inventory report. Oil is up $0.72 at US$106.83 a barrel for September light crude in New York.
