Outlook: Aus shares to open flat

Market Reports

 
Following mixed leads, the Australian share market looks set to open flat, after yesterday’s widely anticipated Reserve Bank announcement of an interest rate hold, failed to make waves across the market. The price of iron ore has fallen another half a percent overnight to US $86.70, on par with its lowest price of the past 5 years.
 
US economic news

American manufacturing activity has reached its peak since early 2011, which, combined with a boost in construction spending, indicates the economy is entering the third quarter with pace. 
 
The figures

Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 17,068, the S&P 500 lost 0.05 per cent to close at 2,002 and the NASDAQ gained 0.4 per cent to close at 4,598.
 
European markets closed mixed: London’s FTSE rose 0.06 per cent, Paris lost 0.1 per cent and Frankfurt gained 0.3 per cent.
 
Asian markets closed mixed: Tokyo’s Nikkei added 1.2 per cent, Hong Kong’s Hang Seng fell 0.01 per cent, and China’s Shanghai Composite rose 1.4 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 29 points up to finish at 5,659. On the futures market the SPI is 3 points up. 
 
Currencies

The Australian Dollar at 7:30AM was buying $US0.9277 cents, 56.35 Pence Sterling, 97.51 Yen and 70.66 Euro cents.
 
Aus eco news

Due out today from the Australian Bureau of Statistics are the national accounts, including gross domestic product for June quarter
 
Australian Industry Group is also releasing the Performance of Services Index (PSI) for August.
 
Company news
 
Lynas Corporation Limited (ASX:LYC) has been issued with a full operating stage license for its Kuantan Pahang minerals processing plant, after a comprehensive review by various independent Malaysian regulators. Lynas Chairman Nicholas Curtis calls it a significant milestone that validates the safe and secure operation of the plant while it held a temporary license. During the company’s tenure at the site, the rare earths mining company has encountered strong opposition from activists, who have concerns about waste disposal and contamination. 
The full operating stage license is up for renewal in 2016. Shares in Lynas Corporation closed flat yesterday at 15.5 cents.  
 
CVC Limited (ASX:CVC) has sold its shareholding of Villa World Limited (ASX:VLW) for around $30.2 million. $15.7 million of the proceeds from the sale will contribute to CVC’s operating profit before tax for this financial year, ending June 2015. The venture capital firm is also entitled to a fully franked dividend from Villa World limited of 0.9 cents per share . Shares in CVC closed 4.93 per cent up yesterday at $1.49. 
 
Commodities

Gold is down $22.40 to $US1,265 an ounce for the December contract on Comex. Silver is down $0.34 to $19.15 for December. Copper is down $0.01 at $3.16 a pound. Oil is down $3.08 at US$92.88 a barrel for October light crude in New York.

Ex-Dividends

Austock Group (ACK)
AMP Limited (ASX:AMP)
ASX Limited (ASX:ASX)
Australian United Investment Company (ASX:AUI)
AV Jennings Homes Limited (ASX:AVJ)
BHP Billiton Limited (ASX:BHP)
Beach Energy Limited (ASX:BPT)
CBA PERLS V (CBAPA)
Commonwealth Bank PERLS VI (CBAPC)
Contango Microcap Limited (ASX:CTN)
Coventry Group Limited (ASX:CTN)
Decmil Group Limited (ASX:DCG)
Diversified United Investment Limited (ASX:DUI)\
Dick Smith Holdings (ASX:DSH)
Fuducian Portfolio Services Limited (ASX:FPS)
Iluka Resources (ASX:ILU)
Jumbo Interactive (JIN)
Mineral Resources Limited (MIN)
MACA Limited (MLD)
Mermaid Marine Australia Limited (ASX:MRM) 
Pact Group Holdings Limited (PGH)
Qube Logisitics (QUB)
Pacific Start Network Limited (ASX:PNW)
Schaffer Corporation Limited (ASX:SFC)
Saunders International Limited (ASX:SND)
Seven West Media (ASX:SWM)
Wellcom Group Limited (ASX:WLL)
WorleyParsons Group Limited (ASX:WOR)
 
 

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