The Australian share market is eyeing a steady start as investors await the US Federal Reserve policy meeting outcome, expected tomorrow morning Australian time. US and European markets mainly rose overnight but tensions in the Middle East continued to weigh on sentiment and kept a cap on gains. Wall Street also absorbed mixed economic data with US consumer prices rising more than expected but applications for building permits falling more than expected.
Global markets
Wall Street moved higher on Tuesday: The Dow Jones Industrial Average rose 27 points to close at 16,808, the S&P 500 rose 4 points to close at 1,942 and the Nasdaq rose 16 points to close at 4,337.
European markets also rose on Tuesday: London's FTSE 100 gained 12 points, France's CAC 40 gained 26 points and Germany's DAX gained 36 points.
Asian markets closed mixed on Tuesday: Japan’s Nikkei added 43 points, Hong Kong’s Hang Seng lost 97 points, and China’s Shanghai Composite lost 19 points.
The Australian share market closed lower yesterday following the release of the Reserve Bank of Australia’s June board meeting minutes: The S&P/ASX 200 index shed 12 points on Tuesday to end at 5,401. On the futures market the SPI is pointing 3 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.9336, 55.06 Pence Sterling, 95.38 Yen and 68.94 Euro cents.
Economic news due out today
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Company news
The chief of last week’s worst performing stock BC Iron Limited
(ASX:BCI) has predicted the iron ore price will rebound from this week’s two year low. Managing Director Morgan Ball described the mood in Perth as apprehensive but pragmatic with the steel making commodity now fetching under $US90 per tonne. However Mr Ball affirmed the industry is cyclical and used to downturns and says BC Iron is prepared for the current conditions amid expectations the iron ore price will get back above $US100 per tonne. After dropping more than 15 per cent over last week BC Iron declined 3.26 per cent on Tuesday to close at $2.97.
Shares in Pancontinental Oil & Gas NL
(ASX:PCL) soared more than 70 per cent yesterday after revealing it has discovered a historic first-ever oil column offshore East Africa. The oil and gas explorer’s discovery comes from the recently completed Sunbird-1 well off the southern Kenyan coast. CEO Barry Rushworth says because of the Sunbird discovery the company expects to see a significant increase in industry interest offshore Kenya. Shares in Pancontinental Oil & Gas soared 71.43 per cent on Tuesday to close at $0.036.
Ex-dividends today
Fisher & Paykel Healthcare Corporation Limited
(ASX:FPH) paying an 8.23 cent unfranked dividend
Ex-dividends tomorrow
Newhaven Hotels Limited
(ASX:NHH) paying a 4 cent unfranked dividend
Commodities
Gold has eased $3.30 to $US1,272 an ounce for the August contract on Comex.
Silver has added $0.02 to $19.73 for July.
Copper has firmed $0.01 to $3.06 a pound.
Oil has dipped $0.54 to $US106.36 a barrel for July light crude in New York.
