MARKETS

Giant contracting firm Leighton Holdings Ltd (ASX: LEI) announced on Wednesday that it is set to replace the current builder of a landmark project at Dubai International Financial Centre following the finalisation of its $220 million deal with UAE-based Daman Investments.

Canadian firm Potash Corp has scored the apparent tactics of BHP Billiton Ltd to spread ‘doubt and confusion’ about the company’s future following the giant resource firm’s hostile bid for the world’s largest manufacturer of fertiliser.

A report published in a Japanese daily has indicated on Wednesday that BHP Billiton Ltd agreed to cut by seven percent coking coal prices that the company is set to ship into Japan for the last quarter of 2010.

In the US overnight, the major indices finished largely unchanged as stronger-than-expected consumer confidence and a rise in home prices helped ease fears that the economy is faltering. Financials were helped by regulatory approval for a Chinese investment in Morgan Stanley.

The Australian Dollar has opened fairly unchanged this morning to be trading at USD0.8920 after trading below USD0.8900 late yesterday.

US consumer confidence rose from 51.0 to 53.5 in August, above expectations for a result near 50.5. The S&P/Case Shiller home price index for 20 metropolitan areas showed a 0.3pct rose in seasonally adjusted terms in June, above forecasts for a 0.2pct gain. But the Chicago purchasing managers index eased from 62.3 to 56.7 in August.

U.S. stocks eked out a tiny advance Tuesday, with AT&T, J.P. Morgan and Merck among the gainers in the conclusion of a bruising month for the market.

Australian economic data released yesterday surprised the market somewhat with Retail Sales, Building Approvals and the Current Account all coming in above expectations.

The first day of September seems to begin well with the Sydney Futures Exchange.

The Australian share market slumped more than 1 per cent on Tuesday, trimming yesterday’s increases as resource stocks and major banks slumped on ongoing uncertainty about the US economy.

Oil and gas explorer Petsec Energy Ltd (ASX: PSA) reported on Tuesday that it suffered earnings retreat as the drilling moratorium in the Gulf of Mexico continues leading to dismal half year figures for the company.

The Australian stock market was lower at midday as doubts about the recovery in the global economy dragged down miners and banks.

A new line of Holden’s Commodore series will soon race through Brazilian roads as the car maker revealed on Tuesday that the new VE Series II model would be exported to the South American country under the name Chevrolet Omega.

Monday's reversal of fortunes gained on Friday dragged the Australian stock market to start low.

On Wall St overnight, US markets gave up most of the points gained during Friday session as stronger-than-expected consumer spending data did little to overshadow a weaker-than-expected rise in personal incomes and the first drop in disposable income since January.

With the AUD trading just bellow USD0.9000 for the majority of yesterday's local trading session, the AUD has fallen about a cent overnight as concerns over the US economy resurfaced after a very short term period of renewed confidence.

US consumer spending rose by 0.4pct in July - marking the strongest reading in four months. US personal income rose by 0.2 pct in July after edging up 0.1pct in June.

U.S. stocks fell Monday despite deal activity from Intel and 3M as investors continued to fret about the health of the economy. The drop came in thin trading.

The Australian Dollar moved above US90 cents for the first time in over a week as sentiment was buoyed by recent comments from the US Federal Reserve that it is prepared to take steps to safeguard the world's largest economy from falling back into recession.

The Australian currency managed to finish almost one US cent higher even after a steady fall throughout the trading day as the Bank of Japan took measures to bolster liquidity in an emergency meeting.

The Australian bourse rallied on Monday, posting a record increase this month, as the investment community took heart from reassurances by US Federal Reserve chairman Ben Bernanke that the central bank would provide more stimuli to the US economy if necessary.

Australian prospectors are searching old mines for more gold as bullion prices increase, pushing production to its record high in more than six years, according to consultant Surbiton Associates.

Gold showed to be steady as it began its fifth straight week in positive territory before the release of mixed US economic data.

Building materials specialist James Hardie Industries SE announced on Monday that it would enter trading halt from 1400 AEST on September 1 pending the Federal Court decision on its appeal against a tax assessment that runs to more than $US330.4 million or $A366.62 million.

The Australian stock market was surging ahead at Monday noon, with banks and mining stocks following a strong lead from Wall Street.

The local market welcomed what Ben Bernanke, chairman of the US Federal Reserve, said over the weekend that he will do whatever it takes to boost the US economy. His statement proved to be the positive impetus for Wall Street, which rallied strongly on the weekend.

Giant oil firm Caltex Australia Ltd (ASX: CTX) announced on Monday that it is tapping Transfield Services Ltd (ASX: TSE) for expansion works on the company’s fuel depot at Port Hedland in Western Australia.

The Australian Dollar surged following comments from Federal Reserve Chairman Governor Bernanke in a keynote speech to global central bankers lifted market sentiment on Friday night.

The US economy grew at a 1.6pct annual pace in the June quarter, down from the original estimate of 2.4pct. Economists had tipped a result near 1.3pct. US consumer sentiment rose from 67.8 to 68.9 in August, short of forecasts near 69.6.