NEW YORK - US stocks rose on Tuesday, after embattled automaker GM surprised Wall Street with stronger-than-expected June sales and financial shares reversed earlier losses as investors scoured for bargains, overshadowing concerns about record oil prices.
The Dow Jones industrial average rose 32.25 points, or 0.28 per cent, to 11,382.26. The Standard & Poor’s 500 Index gained 4.91 points, or 0.38 per cent, to 1,284.91.
The Nasdaq Composite Index advanced 11.99 points, or 0.52 per cent, to 2,304.97.
LONDON - UK stocks ended sharply lower, with banks, led by Royal Bank of Scotland, falling on worries about further losses in the sector, while oils and miners slipped after recent gains.
The FTSE 100 finished 146 points, or 2.6 per cent, down at 5,479.9.
FRANKFURT - The DAX index ended at 6,315.94 points, down 102.38 or 1.60 per cent.
PARIS - The CAC-40 index closed at 4,341.21 points, down 93.64 or 2.11 per cent.
TOKYO - The Nikkei stock average dipped 0.13 per cent to set its longest losing streak in nearly four years as exporters fell on a firmer yen, while worries about the economic outlook dampened investor appetite for risk.
The benchmark Nikkei average fell 18.18 points to 13,463.20.
HONG KONG - Hong Kong stock markets were closed for the anniversary of the territory’s handover to China from Britain. Markets open again on Wednesday.
On Monday the Hang Seng Index closed 59.66 points, or 0.27 per cent, higher at 22,102.01.
WELLINGTON - The sharemarket hit a three-year low on Tuesday, depressed by a 15-year low for top stock Telecom, investor caution, and continued selling by offshore investors.
The NZSX-50 benchmark index shed 19.3 points, or 0.6 per cent, to close at 3,175.3.
SYDNEY - The Australian share market is likely to open higher today tracking US markets which gained overnight.
At 0804 AEST on the Sydney Futures exchange, the September share price index was down eight points to 5,130.
In economic news today, the Australian Bureau of Statistics (ABS) retail trade data for May and the ABS building approvals data for May will be released.
The Department of Education, Employment and Workplace Relations skilled vacancies survey for June is due.
In equities, Insurance Australia Group Ltd holds a briefing for investors.
Fletcher Building Ltd chief executive Jonathan Ling addresses the Trans-Tasman Building Circle on `Fletcher Building - challenges ahead in tougher times’.
The Australian share market closed more than one per cent lower on Tuesday as banking losses overwhelmed gains in the resources sector.
The benchmark S&P/ASX200 index was down 76.4 points, or 1.46 per cent, to 5,138.9 while the broader All Ordinaries shed 71.8 points, or 1.35 per cent, to 5,261.1.
NYMEX
Oil prices rose on Tuesday on forecasts global supplies will struggle to keep pace with demand and concerns tensions between Israel and Iran could lead to a disruption of exports from the OPEC nation.
US crude settled up 97 cents at $US140.97 a barrel, after hitting an intraday record high of $US143.67 a barrel on Monday. London Brent crude gained 84 US cents to settle at $US140.67 a barrel.
Speculation has mounted that Israel plans to attack Iran’s nuclear facilities, which Tehran says are for purely peaceful purposes, following an Israeli air force exercise last month.
Iran’s Revolutionary Guards has said if Iran were attacked it would impose controls on shipping in the Strait of Hormuz. About 40 percent of all seaborne oil trade passes through the Strait of Hormuz, accoring to the EIA.
LONDON METAL EXCHANGE
Copper closed higher on Tuesday, boosted by worries about supply disruptions in Peru, while record high oil prices helped push up aluminium.
Copper for three-month delivery on the London Metal Exchange closed at $8,610 per tonne compared with $8,520 at the close on Monday.
Aluminium closed at $3,155 a tonne after hitting an intraday high of $3,165 - its highest level in more than a week - up from Monday’s close of $3,114.5.
Zinc closed unchanged at $1,930, while tin ended up at $23,600, up from Monday’s close of $23,450.
Nickel closed down at $21,550 a tonne from $21,950 and lead also ended down at $1,766 versus $1,790 on Monday.
COMEX
Gold ended sharply higher after surging to a 10-week high on Tuesday as rising oil prices fueled buying of the precious metal as an inflation hedge.
The US gold contract for August delivery on the COMEX division of the New York Mercantile Exchange settled up $US16.20, or 1.8 per cent, at $US944.50 an ounce.
Gold was at $US938.40/939.40 by New York’s last quote from $US925.95/927.15 in New York late on Monday.
Among other precious metals, spot platinum was little changed at $US2,069.00/2,089.00 an ounce from $US2,060.00/2,080.00 late in New York on Monday.
Spot palladium was slightly lower at $US464.00/472.00 an ounce against its Monday finish of $US459.00/467.00, while silver rose to $US18.09/18.14 an ounce from $SU17.38/17.43 late in New York on Monday.
INTERNATIONAL NEWS
WASHINGTON - Rocketing oil and food prices are being felt around the globe and the surging inflationary pressures could worsen poverty, the International Monetary Fund warned.
MADRID - The head of the International Energy Agency has declared the world is in the grip of an “oil shock” while the president of OPEC acknowledged he cannot say whether crude prices will flatten out or continue to soar.
MADRID - Supply and demand concerns are driving record oil prices as appetite for crude in developing nations is expected to soar over the coming years, the president of Chinese oil major CNOOC said.
DETROIT - US auto sales plunged in June, but a month-end clearance sale helped General Motors Corp retain its No 1 spot and steer clear of the wipeout many had feared, sending its shares climbing.
LOS ANGELES - Starbucks Corp said on Tuesday it plans to close another 500 underperforming stores and eliminate as many as 12,000 full and part-time positions, lifting shares nearly 6 per cent.
LIMA - A mining strike in Peru entered its second day on Tuesday, affecting production at some mines, while workers at others reported for duty and said they were still deciding whether or not to join the nationwide walkout.
PARIS - European Union trade chief Peter Mandelson has urged EU states to unite behind his push for a world trade deal, saying he is being undermined by repeated criticism from French President Nicolas Sarkozy.
SAN JOSE, California - Hackers broke into Citibank’s network of ATMs inside 7-Eleven stores in the United States this year and stole customers’ PIN codes, according to recent court filings that revealed a disturbing security hole in the most sensitive part of a banking record.
JAKARTA - Indonesia has grounded five airlines and given them three months to improve safety standards or face a ban, a transport ministry spokesman said.
STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:
AFG - ALLCO FINANCE GROUP LTD - up 1.5 cents to 41.5 cents
Allco says its bankers have granted the investment firm an extension of a senior debt facility and talks with its bankers were continuing in a “positive manner.”
It has agreed an extension for a $250 million bridging facility and a related review period until July 31.
The extension comes as Allco continues to address an asset realisation program and meet its debt repayment schedule, aimed at reducing it senior debt to $400 million by September 2009.
QANTAS AIRWAY LTD - up 20 cents to $3.24
Qantas is considering a partial float of its Frequent Flyer program and expects to make a decision about the future ownership structure of the business in August.
Chief executive Geoff Dixon said the Qantas board will assess options for the program at its next meeting.
RIO - RIO TINTO LTD - up $2.00 to $137.50
The mining giant has reached further agreements with all of its customers for iron ore deliveries from its Hamersley Iron, Robe River and Hope Downs projects in Western Australia.
The agreements apply for the year beginning April 1, 2008.
The new settlements are in line with Hamersley Iron’s Baosteel settlement announced last week, with lump prices increasing by 96.5 per cent and fines prices increasing by 79.88 per cent.
MCC - MACARTHUR COAL LTD - in trading halt, last traded at l$16.87
The coal miner has suspended trading in its shares to determine whether Korean steelmaker Posco, Asia’s third largest, has become the coal miner’s latest major shareholder.
Posco has reportedly spent $424 million to acquire a 10 per cent stake in Macarthur from founder and former chief executive Ken Talbot at $20 per share.
BBW - BABCOCK & BROWN WIND PARTNERS LTD - up 1.5 cents to $1.66
The fund has acquired four wind farms in Germany.
The wind farms located in four separate German states have a combined total capacity of 19.6 megawatts.
TIM - TIMBERCORP LTD - up 2.5 cents to 79 cents
The agribusiness investment company said it expects a lower annual net profit following a lower level of sales from new projects.
Timbercorp chief executive Sol Rabinowicz said the company expects a net profit after tax for fiscal 2008 “in the range of $53 million to $57 million”.
Timbercorp reported a net profit of $65.7 million for 2006/07.
BPT - BEACH PETROLEUM LTD - down two cents to $1.32
Beach Petroleum Ltd has closed out a large portion of its oil hedge book to take advantage of an expected continuation of high oil prices over the next six months.
UNI - UNILIFE MEDICAL SOLUTIONS LTD - down seven cents to 39 cents
Unilife has entered into a five-year global licensing agreement with France’s Sanofi-Aventis for its syringe product.
In exchange for exclusive rights to the ready-to-fill syringe (RTFS) product, Sanofi-Aventis will pay Unilife a license fee of 10 million euros ($16.4 million) to be paid by July 31.
ABC - ADELAIDE BRIGHTON LTD - up seven cents to $3.82
Adelaide Brighton Ltd’s acquisition of concrete products business Hanson Building Products Pty Ltd will boost is earnings in the fast-growing Queensland market where HBP is mostly based.
SEV - SEVEN NETWORK LTD - up seven cents to $7.60
Seven Network Ltd will launch the Tivo digital video recorder this month, in an effort to stem the migration of free-to-air viewers to pay TV.
PRG - PROGRAMMED MAINTENANCE SERVICES LTD - up 20 cents to $3.55
Programmed Maintenance Services Ltd says it is on track to achieve its earnings forecasts for the 2009 financial year as it acquires engineering maintenance company SWG.
QGC - QUEENSLAND GAS COMPANY LTD - down 28 cents to $5.09
Queensland Gas Company Ltd (QGC) has defined more than a third of the required gas reserves it needs for a proposed $8 billion liquefied natural gas (LNG) development with BG Group Plc.
