After hitting a six-year high yesterday the SPI is pointing to a steady start for the Australian share market today. Local stocks rose yesterday in response to global market gains at the end of last week but European and US markets reversed direction on Monday. Conflict in Gaza and Ukraine impacted equity markets but Wall Street was encouraged by President Obama’s remarks vowing to pursue accountability. A resolution from the UN to pursue an independent investigation into last week’s crash over Ukraine also supported the major indexes to lift from the session’s low by close. Closer to home Reserve Bank of Australia Governor Glenn Stevens will speak at the Anika Foundation charity lunch.
Global markets
Wall Street backtracked from last week’s gains and ended Monday in the red: The Dow Jones Industrial Average slipped 0.3 per cent to close at 17,052, the S&P 500 dipped 0.2 per cent to close at 1,974 and the Nasdaq eased 0.2 per cent to close at 4,425.
European markets dropped into the new week: London's FTSE 100 fell 0.3 per cent, France's CAC 40 fell 0.7 per cent and Germany's DAX fell 1.1 per cent.
Asian markets also closed lower on Monday: Japan’s Nikkei retreated 1 per cent, Hong Kong’s Hang Seng lost 0.3 per cent, and China’s Shanghai Composite eased 0.2 per cent.
The Australian share market hit a six-year high yesterday, lifting to its highest point since June 2008: The S&P/ASX 200 index started the week 8 points stronger at 5,540. On the futures market the SPI is 4 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.9375, 54.93 Pence Sterling, 95.08 Yen and 69.34 Euro cents.
Company news
Australian Foundation Investment Company’s
(ASX:AFI) preliminary report has shown it improved its net profit by 4.8 per cent to $254 million in the 2014 financial year. Australia’s largest listed investment company generated a portfolio return of 17.3 per cent over the year compared with the S&P/ASX 200 Accumulation Index at 17.4 per cent. Looking ahead the company says market risks are elevated but attractive opportunities to invest could include more IPOs and the privatisation of government assets. A final fully franked dividend of 14 cents per share has been declared, bringing the full year payout to 22 cents per share. Shares in Australian Foundation Investment Company fell 0.49 per cent to close at $6.15 on Monday.
Power generation project developer Pacific Energy Limited
(ASX:PEA) has confirmed it is in talks with AngloGold Ashanti Limited
(ASX:AGG) to convert the Tropicana Gold Project power station to be gas fuel compatible. Pacific Energy currently maintains the project’s diesel power station in Western Australia while AngloGold Ashanti is the manager of the Tropicana mine with a 70 per cent stake. The news comes after APA Group
(ASX:APA) yesterday announced plans for a new $140 million gas transmission pipeline to supply mining operations including the Tropicana mine. Shares in Pacific Energy fell 2 per cent to close at $0.49 on Monday.
Commodities
Gold has gained $4.50 to $US1,314 an ounce for the August contract on Comex.
Silver has added $0.08 to $20.96 for September.
Copper has lifted $0.01 to $3.20 a pound.
Oil has risen $1.46 to $US104.59 a barrel for August light crude in New York.
