Sydney, Oct 8, 2007 (ABN Newswire) -
The Australian market looks set to rise today, following Wall Street's lead after positive jobs data released tension that was brewing about the US economy, driving investor confidence. Firmer base metal prices will also likely underpin Aussie miners.
On Friday the S&P/ASX200 rose 39 points to 6,605, recovering from the previous session's decline; on the future's market the SPI200 is up 60.
Turning to currencies, the Australian dollar has risen to its highest level in 23 years against the US dollar this morning, at 8:40AM the Aussie is buying 89.93 US cents, on the crosses the dollar is buying 105.25 yen, 63.61 Euro cents, and 44.06 British pence.
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http://abnnewswire.net/lnk/9A7608V9Telstra shares were steady on Friday at $4.35. Pressure for Telstra to split into two companies to lift shareholder value is mounting after the ACCC agreed the telco could be spit-up. Now Babcock & Brown has weighed in, questioning Telstra's argument against splitting the company, according to the Sydney Morning Herald. Babcock & Brown has decided to separate its Irish telephony business into wholesale and retail divisions. Telstra has held the position that any split in the company would destroy shareholder value. Telstra has yet to see earnings recover to record levels achieved in 2005.
Shares in Rio Tinto were up 1.29% to $107.65. The mining giant has one more notch in its belt after receiving US Exon-Florio approval for its multi-billion dollar takeover of Canadian aluminium producer Alcan. The provision allows the US president to block certain types of foreign investment, and was needed for the deal to proceed. Last month, Rio Tinto extended its all-cash offer by about one month so it could gain the necessary regulatory approvals. The transaction should go ahead in the fourth quarter. Rio Tinto's earnings have been soaring since 2002.
And briefly, BHP Billiton's president of gas and power is retiring. Rebecca McDonald will be replaced by Renee Klimczak, the company's current vice president for natural gas Americas.
The S&P/ASX top 200 company trading ex-dividend today is Kagara Zinc with a 12 cent fully franked dividend to be paid on the 19th of October.
To international markets, US markets soared on positive jobs data; after hitting an all-time high earlier in the session the Dow Jones Industrials settled 92 points higher, the S&P500 hit a record high by adding 15 and the Nasdaq composite firmed 47 points closing at its highest level since early 2001.
European shares added to gains after Wall Street's results. London's FTSE was up 48; Paris advanced 39, and Frankfurt added 57.
To Asia, where Hong Kong's Hang Sang soared 858; Tokyo's Nikkei was down 27; and China's SSE Composite was closed once again.
Back to the US, gold staged a late day rally to finish up $3.40 to $747.20 US an ounce for the spot contract on Comex, Silver lost 1 cent to $13.49, copper was also down 1 cent to $3.73.
And finally, oil fell 22 cents to $81.22 a barrel for November light crude in New York.
Source: Finance News Network © 2007
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