The Australian sharemarket is snapping a three-day losing streak, with the ASX 200 up by 33pts or 0.49 per cent to 6673.3 thanks to gains across most sectors. This is despite comments aimed at China from US President Donald Trump who said that both nations have a ‘long way to go’ on trade while simultaneously threatening additional tariffs.
BHP is up 1.3 per cent after releasing a solid quarterly update. While production was flat over the past year due to Tropical Cyclone Veronica in March, production jumped by 12 per cent in the June quarter as output returned to normal. The iron ore price remains at a five-year high and BHP sold iron ore at a 37 per cent premium over the half compared to this time last year.
Rio Tinto (RIO) is bouncing back from a pullback on Tuesday after announcing a cost blowout at a copper mine it is developing in Mongolia.
Shipbuilder Austal (ASB) is up 10 per cent after raising its profit expectations for 2020 thanks partly to strong demand for work from the US Navy.
Estia Health (EHE) is down 3 per cent after the aged care group was served with a class action alleging breaches of market disclosure obligations in 2015 and 2016.
Agricultural company, Elders (ELD) is up 14 per cent after successfully raising sufficient funds from investors to help buy Australian Independent Rural Retailers in a deal worth $187m.
Poker machine game maker, Aristocrat Leisure (ALL) is up 3.8 per cent after receiving a broker upgrade and having its price target raised.
Breville Group (BRG) has acquired US food and technology startup, ChefSteps according to an AAP report.
Volume remains relatively light, with 1.4bn shares traded worth $2.3bn. 534 stocks are up, 465 down and 359 are flat.
No major market moving data is due for release today in Australia.
Tonight, Bank of America, Alcoa, IBM, Texas Instruments and Steel Dynamics will release quarterly results in the US. An update on weekly crude oil inventories will be released (has a tendency to impact oil prices), together with an update on housing starts and the Federal Reserve’s latest Beige Book.
Thursday is set to be a busy day locally, with South32 (S32), Santos (STO), Woodside (WPL) and CIMIC (CIM) all set to post quarterly results while the June read on employment/unemployment will also be released.
Published by CommSec