Following six days of gains the Australian share market is set to snap the winning streak this morning. European and US markets moved lower overnight on the back of weaker than expected earnings. The Australian dollar has risen back above $US0.74 ahead of inflation figures due this morning.
Global markets
Wall Street closed near session lows on Tuesday: The Dow Jones Industrial Average retreated 1 per cent to close at 17,919, the S&P 500 retreated 0.4 per cent to close at 2,119 and the Nasdaq retreated 0.2 per cent to close at 5,208.
European markets also dropped on Tuesday: 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 gained ground on Tuesday: Japan’s Nikkei rose 0.9 per cent, Hong Kong’s Hang Seng lifted 0.5 per cent, and China’s Shanghai Composite firmed 0.6 per cent.
The Australian share market rose 0.3 per cent to hit a seven week high on Tuesday: The S&P/ASX 200 index gained 20 points to close at 5,707. On the futures market the SPI is 27 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.7427, 47.73 Pence Sterling, 92 Yen and 67.9 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Consumer Price Index
Company news
Automotive Group Holdings Limited
(ASX:AHG) has flagged plans for the potential sale and lease-back of properties. The automotive retailing and logistics group says it is in exclusive talks regarding an existing dealership site and two development properties. Managing Director Bronte Howson says the proposed agreement is part of the company’s strategy to maintain capital in its balance sheet to fund growth opportunities. Shares in Automotive Group Holdings rose 0.24 per cent to close at $4.25 on Tuesday.
Shares in Valence Industries Limited
(ASX:VXL) jumped yesterday after inking a three year graphite sales deal. The graphite manufacturer says the multi-year, multi-product contract has been signed with a major new customer based in the Asia Pacific. Valence believes the deal is significant as it provides for sales in excess of $US50 million over the next three years. Shares in Valence Industries jumped 10.2 per cent to close at $0.27 on Tuesday.
Ex-dividends
Mirrabooka Investments
(ASX:MIR) paying a 13.5 cent fully franked dividend
Commodities
Gold has declined $6.80 to $US1,100 an ounce for the August contract on Comex.
Silver has lifted $0.06 to $14.82 for September.
Copper has eased $0.01 to $2.47 a pound.
Oil has gained $0.23 to $US50.67 a barrel for August light crude in New York.
