A strong day of trade on Wall Street saw the S&P 500 hit a new intra-day record and the optimism looks set to flow onto local markets with the SPI pointing towards a positive start for Australian shares.
The market is poised ahead of speeches from US Fed Chair Janet Yellen and European Central bank President Mario Draghi due tonight, most commentators are expecting a continuation of conciliatory policies but it is clear that any new signals will have a big impact on the global economy.
Global figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.4 per cent to close at 17,039, the S&P 500 added 0.3 per cent to close at 1,992 and the NASDAQ gained 0.1 per cent to close at 4,532.
European markets closed up: London’s FTSE gained 0.3 per cent, Paris is up 1.2 per cent and Frankfurt is up 0.9 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.9 per cent, Hong Kong’s Hang Seng lost 0.7 per cent, and China’s Shanghai Composite lost 0.4 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 4 points up to finish at 5,639. On the futures market the SPI is 10 points up.
Turning to currencies and the Australian Dollar at 7:30AM was buying $US0.9302 cents, 56.12 Pence Sterling, 96.60 Yen and 70.06 Euro cents.
Company news
Alumina Limited
(ASX:AWC) reported an increased first half net loss with the closure of the Point Henry smelter weighing on the result.
Despite the company’s net loss extending to $US47.4 million in the 6 months to the end of June the aluminium company’s share price closed higher yesterday. CEO Peter Wasow says despite challenging market conditions Alumina's balance sheet remained very strong and the company is well positioned for any industry upturn. The company says it will not pay an interim dividend. Shares in Alumina closed 4.44 per cent up yesterday at $1.53
Village Roadshow Limited
(ASX:VRL) has reported a 10 per cent drop in full year net profit citing marketing for the new Wet’n’Wild Sydney as being a major cost for the period.
The entertainment and media company posted a net profit $45.8 million in the 2014 financial year and has declared a final dividend of $0.14 full franked. Co-Chief Executive Graham Burke says people’s budgets have clearly been squeezed by increasing costs with multiple devices and computers being a major cost. Shares in Village Roadshow closed 2.68 per cent lower yesterday at $7.26.
Commodities
Gold is down $19.80 to $US1,275 an ounce for the December contract on Comex.
Silver is down $0.08 to $19.42 for September.
Copper is down $0.001 at $3.18 a pound.
Oil is up $0.51 at US$93.96 a barrel for October light crude in New York.
Ex-dividends Domino's Pizza Enterprises Limited
(ASX:DMP) 19c fully franked, Echo Entertainment Group Limited
(ASX:EGP) 4c fully franked, Fairfax Media Limited
(ASX:FXJ) 2c fully franked, ITL Limited
(ASX:ITD) 0.5c fully franked, My Net Fone Limited
(ASX:MNF) 2.5c fully franked, Summerset Group
(ASX:SNZ) 1.07c unfranked.
