Rio Tinto, Show Me the Money

Rio Tinto (RTP) said its capital expenditure forecast for 2010 will more than double to at least $5 billion, a clear sign that the mining giant is expecting more improvement in demand for its products.

According to Dow Jones, the company disclosed this new forecast in a filing saying the figure could even rise to as much as $6 billion.

CEO Tom Albanese also said the company will continue its cost cutting and debt repayment efforts. Notable is that the company reduced its net debt to $22.3 billion in September, which was down 42% since the end of December.

Mr Albanese also said the “renewed strength” will allow Rio to focus on “disciplined” capex on “premier growth options” to position the company for an expected recovery in demand growth over the longer term.

From the Bull Pen: Is the global economy improving? As Professor Krueger said yesterday, it all depends on where you look. For Rio, holding the 50-day moving average (at $173) was a good sign in the short-term. One can still use that level as a place to set near-term sell stops. First significant resistance is at $200.

From the Bear Cave: Bears can look elsewhere. Watch for a failed rally in Abercrombie & Fitch (ANF) below $37.50. Entry if and when.


A Quick Check Around the World

Asian trading closed with the Nikkei 1.45%, India -0.97%, Hang Seng 2.29%, Shanghai 1.20%, and Taiwan -0.21%.

Across the pond, we see the FTSE 0.27%, CAC -0.26%, DAX -0.43%

As of 8:15 a.m. EST, S&P Futures are trading -3.50 to 1058.00 and Nasdaq futures are -3.250 to 1704.25.

A Look at Commodities

Over in commodities, crude oil is -0.57 to 79.30 while gold is -2.90 to 1044.20 this morning. Silver is -8.00 to 1657.5 and copper -3.550 to 299.40.

The dollar index is +0.1050 to 76.1700.

On the Radar

Economics

08:30 Personal Income 0.0% cons.
08:30 Personal Spending -0.4% cons.
08:30 PCE Prices
08:30 Core PCE Prices 0.2% cons.
09:45 Chicago PMI 48.5 cons.
09:55 Michigan Sentiment 70.0 cons.
10:00 Employment Cost Index 0.5%


Happy Friday! Have a great and safe Halloween! See you back on Monday!