MARKETS

The Australian stock market was slightly weaker at Thursday noon, following a negative lead from the US markets overnight.

Copper mining firm CuDeco Ltd (ASX: CDU) said on Thursday that a major institutional investor infused placement investment of up to $20 million into the company, allowing the institution to get a 6.84 percent interest in the emerging resource industry player.

Australian stocks are marginally lower at lunchtime in the East, following a negative offshore lead and lack of market moving economic data. The All Ordinaries Index (XAO) is lower by 7.2pts or 0.2pct to 4667.5.

U.S. stocks slipped Wednesday, with Microsoft, Bank of America and J.P. Morgan Chase leading the decline as investors worried about the Federal Reserve's Tuesday suggestion that the economy may need additional stimulative measures. The Dow Jones Industrial Average dropped 21.72, or 0.20%, to 10739.31, breaking a five session winning streak and marking its biggest one day drop since Sept. 7.

The AUD traded solidly throughout Asia yesterday consolidating stoically above 0.9550 for most of the day.

Virgin Blue Holdings Ltd (ASX: VBA) got the nod this time following the series of setbacks on its proposed alliances with Delta Air Lines in US and Air New Zealand in trans-Tasman routes as the Australian Competition and Consumer Commission (ACCC) gave on Thursday its green light for the carrier’s planned collaboration with Etihad Airways.

Trading this morning opened lower on the Sydney Futures Exchange. The December share price index contract was 14 points lower at 4637.

The Australian currency hit a fresh 25-month high on Wednesday noon, following talks the Federal Reserve might reinvigorate stimulus measures to aid the ailing US economy.

The Australian currency strengthened more than one US cent to a 25-month high on Wednesday after the US Federal Reserve signalled it might engage in another round of quantitative easing.

The Australian bourse ended slightly higher on Wednesday after a rollercoaster trade in which profit-taking impacted on gains led by offshore sentiment.

BHP Billiton Ltd has acknowledged that the global economy is on its way to recovery but the giant resources company maintained that spots of fragility still exists as it added that encouraging economic prospects in Asia give the mining firm a positive outlook for more growth in the years to come.

Mineral and metal explorer Diatreme Resources Ltd (ASX: DRX) announced on Wednesday that it has entered into a joint partnership with fellow Aussie miner Image Resources NL (ASX: IMA) following the agreement that the company sealed last month with a Chinese firm to develop the Cyclone and Cyclone Extended heavy mineral sand deposit in Western Australia.

The Australian stock market was stronger at Wednesday noon, as news from the US buoyed banking stocks.

Mining firm Gindalbie Metals Ltd announced on Wednesday that a $120 million contract to construct a power transmission line on its $2 billion Karara iron ore exploration site in Western Australia has been awarded to resource contract specialist Downer EDI Ltd (ASX: DOW).

The Australian currency is expected to continue its rally over the near term especially if the Reserve Bank of Australia decides to raise the interest rates.

Fresh from its revelation that it garnered a total of $US12.47 billion of profit during the financial year 2009/10, BHP Billiton Ltd (ASX: BHP) rewarded its top honcho Marius Kloppers with a nine percent spike on his salary compensation, leading to a total pay of $US11.3 million or $A11.86 million last year.

Another night in the currency markets and another post GFC high for the Australian Dollar. The US Dollar weakened after the FOMC statement signalled a move to Quantitative Easing “QE”.

US housing starts rose by a sharper than expected 10.5pct in August to a four-month high. Despite the rise housing starts are still 12pct below the levels seen in April, when activity was being boosted by the homebuyer tax credit.

Blue chip stocks finished slightly higher for a fifth-straight session Tuesday, led by Caterpillar, Hewlett-Packard and Intel, after the Federal Reserve hinted it could take additional measures to stimulate economic growth.

The Australian Bureau of Agricultural and Resource Economics (ABARE) forecasts total commodity exports to rise 26 percent in 2011.

Wednesday trading at the Sydney Futures Exchange could see a drop in Australian shares due to a very slight change in US stocks and a drop in commodity prices.

The Australian currency is almost unchanged on Tuesday's local close after minutes of the Reserve Bank of Australia's September board meeting shortened odds of an October interest rate rise.

The Australian stockmarket has closed lower despite a positive start, as investors stayed on the sidelines ahead of commentary from US Federal Reserve chairman Ben Bernanke tonight AEST.

Gold miner North Queensland Metals Ltd's (ASX: NQM) pronouncement yesterday that Conquest Mining Ltd (ASX: CQT) was likely nearing closer on its quest to take control of NQM may be coming true after all as Conquest announced on Tuesday that its stake on the target company went up from 32.76 percent to 37.49 percent.

South Africa-focused coal miner Continental Coal Ltd (ASX: CCC) reported on Tuesday that it has surpassed the company’s monthly target of 100,000 tonnes when its July output reached a total of 101,899 tonnes of thermal coal at its Vlakvarkfontein coal mining site.

Junior mining company Avanco Resources Ltd (ASX: AVB) saw its market stocks climbing to steep levels as the company revealed on Tuesday that its drilling activities in Brazil yielded high copper grades that could see production very soon.

The Australian currency was slightly firmer at Tuesday noon after the central bank gave another strong indication of an increase in cash rates.

The Australian bourse remains stronger at Tuesday noon although it pared some morning gains, following a rise on United States markets overnight.

The Australian dollar hit a 2 year high overnight, falling just short of USD 0.9500 after positive comments from RBA Governor Glenn Stevens yesterday boosted the local currency.