June 5, 2014 / 11:26 PM / 3 years ago

Australia shares may edge up as ECB cuts, caution on resources

SYDNEY, June 6 (Reuters) - Australian shares are set to start with a positive tone early on Friday, supported by new highs on Wall Street after the European Central Bank cut rates to record lows.

* Local share price index futures rose 0.2 percent, a 15.1-point premium to the underlying S&P/ASX 200 index close. The benchmark fell 0.2 percent on Thursday to a two-week low, slipping for a third day.

* New Zealand’s benchmark NZX 50 index added 0.1 percent in early trade.

* The Dow and the S&P 500 both ended at new highs on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation.

* Copper dipped after a bank suspended some metals financing due to a Chinese port investigation, prompting some concerns that the probe may lead to liquidation of the finance deals. Gold rose nearly 1 percent.

* BHP Billiton chief executive Andrew Mackenzie said the iron ore market was facing temporary overcapacity, but there was enough demand coming back from China and elsewhere to justify the firm’s capacity increase.

* Sundance Resources Ltd has appointed Mota-Engil Africa to build a A$3.5 billion port and rail infrastructure for the Mbalam-Nabeba iron ore project.

* Evolution Mining Ltd has appointed Lawrie Conway as its new CFO and said group production in FY 2014 is forecast to be between 400,000 - 450,000 ounces of gold equivalent.

----------------------MARKET SNAPSHOT @ 2309 GMT ------------

INSTRUMENT LAST PCT CHG NET CHG S&P 500 1940.46 0.65% 12.580 USD/JPY 102.41 0.03% 0.030 10-YR US TSY YLD 2.5842 -- 0.000 SPOT GOLD 1253.25 0.00% -0.040 US CRUDE 102.46 -0.02% -0.020 DOW JONES 16836.11 0.59% 98.58 ASIA ADRS 146.27 0.55% 0.81 -------------------------------------------------------------

* Dow, S&P close at records; payrolls in focus * Brent crude oil futures rise as European oil demand seen higher * Gold rallies on ECB rate cut, biggest gain in 3 weeks * Aluminium up on warehouse court case, copper slips on port probe

For a digest of the day’s business stories in Australian newspapers, double click on

Reporting by Thuy Ong; Editing by Richard Pullin

Our Standards:The Thomson Reuters Trust Principles.
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