Markets Live: Miners weigh on shares

The world’s largest economy, which began recovering in July 2009, may continue growing for five years or more, making it the longest period of expansion, Morgan Stanley said. 9:05am: Shares are poised for a cautious start with a weak lead from Wall St and after the price of iron ore dropped further to match a two-year low, while AMP and BHP trade ex-dividend and GDP growth data for the June quarter is released. • AUD at 92. 80 US cents, 97. 54 Japanese yen, 70. 67 Euro cents and 56. 32 British pence. • On Wall St, S&P 500 -0. 1%, Dow -0. 2%, Nasdaq +0. • In Europe, Euro Stoxx 50 +0. 2%, FTSE +0. 1%, CAC -0. 03%, DAX +0. • Iron ore falls 0. 5% to $US86. • Spot gold slips 1. 6% to $US1265. • Brent oil down 2. 4% to $US100. • Australia: Q2 GDP data at 11:30am AEST; RBA governor speech to CEDA in Adelaide at 1:20. • China: non-manufacturing PMI at 11am; HSBC services PMI at 11:45am. • US (overnight): auto sales, Beige Book. • A number of stocks trade ex-dividend: AMP, BHP, ASX, Beach Energy, Iluka, Mineral Resources, Mermaid Marine, Nine Entertainment, Pact Group, Qube, Sky Network, Seven West Media, WorleyParsons. • Deutsche Bank upgraded Perpetual to “buy” and has a $49. 90 a share price target on the stock. • Hartleys Research has retained an “accumulate” on Atlas Iron and a 12-month price target of 64¢ as it lowers its iron ore price assumptions in line with recent sell-side consensus. 9:05am: Good morning and welcome to the Markets Live blog for Wednesday.

Older shoppers make up 18 per cent of the Australian population, but just eight per cent of their purchases are made online. 2:29pm: Hot on the heels of yesterday’s RBA statement, where China‘s weakening property prices featured for the first time, Glenn Stevens today dedicating a few pars of his speech in Adelaide to Australia‘s biggest trading partner. 1:49pm: BHP Billiton and Rio Tinto could earn as much $US800 million between them for at least three years when they unlock a “secret” 200,000 tonnes of copper at their Escondida copper mine in Chile, Deutsche Bank says.

But Young expects the miners will instead choose to keep all three plants running for at least the rest of this decade, which will increase Escondida’s copper production by 200,000 tonnes per year from financial 2018. “It is the closest to a ‘game changing event’ at the asset level for both companies,” he says, arguing it could mean the two companies get an earnings uplift of between $US200 million and $US600 million for at least three years. BHP and Rio hold 57. 5 per cent and 30 per cent of Escondida respectively. “We think a production surprise is coming at Escondida,” Young says.

Read more here: SMH


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