Australia shares seen struggling as copper price falls

MELBOURNE: Australian shares may struggle to recover from recent steep falls on Thursday, with miners weighed down by a fall in copper prices to 3-week lows on worries about prolonged US economic gloom.

Share index futures rose 12 points to 4,298, still a 34.8 point discount to the last close of the underlying S&P/ASX 200 index. The index fell 2.3 percent on Wednesday and 1.4 percent on Tuesday.

World no.3 miner Rio Tinto is expected to report a 39 percent rise in first half underlying earnings as the Australian market closes on Thursday, powered by higher production volumes and prices.

Fast-food group Collins Foods makes its debut on the local bourse on Thursday.

The S&P 500 index rose in late trade overnight. Trading was the busiest since mid-March, with more than 10 billion shares changing hands as the S&P dipped to a new low for 2011 before storming back to finish higher.

Energy stocks such as Woodside Petroleum may come under pressure after oil prices fell sharply to the lowest level in a month on concerns about oil demand.

Gold producers such as Newcrest Mining are set to extend gains after bullion prices rose toward $1,675 an ounce on Wednesday, hitting its second record in two days.

New Zealand's benchmark NZX 50 index rose 0.5 percent to 3,388.2 after better-than-expected employment numbers.

Copyright Reuters, 2011