The Australian share market is expected to regain some ground today after US stocks posted strong gains after the Federal Reserve revealed positive economic data.
US economic news
The Federal Reserve's beige book survey showed the US economy grew at a modest to moderate pace in July and August. The survey also found modest expansion in the manufacturing sector and rising consumer spending in most districts.
But investors are really looking ahead to the government's jobs report on Friday as it’s a key indicator of when the Federal Reserve will start reducing monetary stimulus.
Figures
Wall Street shot up overnight: The Dow Jones Industrial Average gained 97 points to close at 14,931, the S&P 500 added 13 points to close at 1,653 and the NASDAQ lifted by 36 points to close at 3,649.
European markets pushed moderately higher: London’s FTSE and Paris added 6 points, while Frankfurt gained 15 points.
Asian markets were mixed: Tokyo’s Nikkei jumped 75 points, Hong Kong’s Hang Seng fell by 68 points, and China’s Shanghai Composite added 5 points.
The Australian share market closed 0.7 per cent down as upbeat GDP data failed to alleviate investor concerns about the situation unfolding in Syria. The S&P/ASX 200 index closed 35 points down to finish at 5,162. On the futures market the SPI is 16 points up.
While that GDP data failed to move the market, it did push the Australian dollar to a two-and-a-half-week high. At 7:30AM the Aussie was buying $US91.68 cents, 58.69 Pence Sterling, 91.48 Yen and 69.45 Euro cents.
Economic news
The Australian Bureau of Statistics will release the international trade in goods and services data for July.
Company news
BHP Billiton’s Limited
(ASX:BHP) new coal chief Dean Dalla Valle says there are more cuts to come at the mining giant’s Queensland coking coal unit, according to media reports. Mr Dalla Valle's comments came at the opening of the $1.5 billion Daunia coking coalmine, which came in under budget and ahead of schedule. But he says measures already taken to cut costs and boost efficiency are not enough to ensure long-term competitiveness. Shares in BHP slipped about three quarters of a per cent (0.78 per cent) yesterday to close at $35.54.
One of China's top zinc producers is looking to buy Perilya Limited
(ASX:PEM) in a deal that values the mining company at $269.3 million. The Chinese company already owns 53.4 per cent of Perilya, which operates base- and precious-metal mines in Australia and the Dominican Republic. Shares in Perilya soared 43.18 per cent yesterday to close at 31.5 cents.
Commodities
Gold is down $22 to $US1,390 an ounce for the December contract on Comex. Silver is down $1.01 to $23.42 for December. Copper is down $0.06 at $3.24 a pound. Oil is down $1.31 at US$107.23 a barrel for October light crude in New York.
Ex-dividend
Prophecy International Holdings Limited
(ASX:PRO)
