With news of the European Central Bank’s plans for at least 1.1 trillion euros of bond buying the local sharemarket is set to extend the gains of the past two days and open higher.
The ECB has assuaged its detractors and committed to inject 60 million euros per month into the economy starting in March. The move is a bid to stimulate Europe’s stagnant economies and get inflation back towards 2 per cent.
Stock indexes in Europe and the US have all reacted with enthusiasm and posted strong gains overnight while the euro slipped to an eleven year low.
As Aussie stocks look set to gain, the local currency is on its way to push below $US0.80.
To the figures: Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1.5 per cent to close at 17,814, the S&P 500 added 1.5 per cent to close at 2,063 and the NASDAQ is up 1.8 per cent to close at 4,750.
European markets closed up: London’s FTSE is up 1 per cent, Paris lost gained 1.5 per cent and Frankfurt pushed 1.3 per cent higher.
Asian markets closed up as well: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng is up 0.7 per cent, and China’s Shanghai Composite gained 0.6 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 27 points up to finish at 5,420. On the futures market the SPI is 64 points up.
Turning to currencies and the Australian Dollar at 8:20AM was buying $US0.8003 cents, 53.39 Pence Sterling, 94.94 Yen and 70.6 Euro cents.
Company news
The CEO of Macmahon Holdings Limited
(ASX:MAH) resigned yesterday, effective immediately, with Chairman Jim Walker to act as CEO until a replacement can be found.
The company says the board is committed to implementing cost saving measures across the business as the company deals with lower demand for mining services. Shares in Macmahon closed 1.59 per cent lower yesterday at $0.06.
Villa World Limited
(ASX:VLW) has appointed Gerald Lambert as non-executive director starting 22 January.
The land and building developer says Mr Lambert’s corporate career spans 30 years and that he is a director of a listed mining company as well as Deputy Chair of a national charity. Shares in Villa World closed 0.5 per cent up yesterday at $2.01.
Commodities
Gold is up$9.10 to $US1,303 an ounce for the Februarycontract on Comex.
Silver is up $0.16 to $18.36 forMarch.
Copper is down $0.02 at $2.59 a pound.
Oil is down $1.24 at US$46.54 a barrel for February light crude in New York.
Ex-dividends Newhaven Hotels Limited (ASX:NHH) is paying 3c fully franked.
