As the Australian dollar rises back above $US0.94 the Australian share market looks set to open lower after Wall Street ended barely unchanged on Monday. US investors stayed on the sidelines ahead of second quarter growth figures, a US Federat Reserve policy meeting and the July employment report. In Europe geopolitical tensions where back in focus with concerns surrounding the Middle East and Russia. On the local front Australia will get new home sales data for June, which snapped an uptrend in May and posted a 4.3 per cent fall.
Global markets
Wall Street started the new week with a whimper: The Dow Jones Industrial Average added 0.1 per cent to close at 16,983, the S&P 500 firmed 0.03 per cent to close at 1,979 and the Nasdaq slipped 0.1 per cent to close at 4,445.
European markets also closed mixed on Monday: London's FTSE 100 lost 0.05 per cent, France's CAC 40 added 0.3 per cent and Germany's DAX lost 0.5 per cent.
Asian markets lifted into the new week: Japan’s Nikkei gained 0.5 per cent, Hong Kong’s Hang Seng advanced 0.9 per cent, and China’s Shanghai Composite jumped 2.4 per cent.
The Australian share market ended slightly lower as the beginning of local earnings season got underway yesterday: The S&P/ASX 200 index dipped 6 points on Monday to close at 5,577. On the futures market the SPI is 7 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.9408, 55.4 Pence Sterling, 95.79 Yen and 70 Euro cents.
Economic news due out today
Housing Industry Association: New home sales data for June
Company news
Shares in Boart Longyear Limited
(ASX:BLY) got a boost yesterday after providing an update on its financial position. The mining services provider reported a rise in second quarter revenue from the prior quarter but a fall compared to the year before. Boart Longyear also advised it will remain compliant with its bank financial covenants at least through the end of this year. The company expects to implement a recapitalisation solution over this time but has warned it could risk breaching financial covenants should market conditions weaken. Shares in Boart Longyear rose 2.22 per cent to close at $0.23 following the announcement.
Elders Limited
(ASX:ELD) has outlined an eight point plan geared to deliver sustainable earnings of $60 million. The agribusiness is also targeting return on capital of 20 per cent in and from the 2017 financial year. The plan includes a series of goals such as building Elders’ brand, cutting costs and strengthening the company’s divisions. CEO Mark Allison says Elders is taking a significant step closer to being an efficient user of capital, producing acceptable returns for all its stakeholders. Shares in Elders fell 2.22 per cent to close at $0.22 ahead of the announcement.
Ex-dividends today
Hastings High Yield
(ASX:HHY) paying a 25.8 cent unfranked dividend
Ex-dividends this week
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.5 cent unfranked dividend
Dicker Data Limited
(ASX:DDR) paying a 0.5 cent fully franked dividend
Katana Capital
(ASX:KAT) paying a 1.5 cent, 50 per cent franked dividend
Singapore Telecommunications
(ASX:SGT) paying a 10 cent unfranked dividend
Commodities
Gold has lifted $0.70 to $US1,304 an ounce for the August contract on Comex.
Silver has slipped $0.02 to $20.62 for September.
Copper has firmed $0.003 to $3.24 a pound.
Oil has lost $0.42 to $US101.67 a barrel for September light crude in New York.
