The Australian share market is eyeing a positive start after returning from the Australia Day Public holiday. After climbing 3.7 per cent over last week offshore gains look to support the benchmark index in the new trading week. Local traders will today absorb the election of Greece's anti-austerity party while mulling the implications for the broader region.
The Australian dollar has rebounded back above $US0.79 while the price of iron ore has slumped more than 4 per cent and is at five-year lows. On the economic front official inflation data will be in the spotlight tomorrow while today will see reads on consumer and business confidence.
Global markets
Wall Street fell on Friday but rose on Monday: The Dow Jones Industrial Average added 0.03 per cent to close at 17,678, the S&P 500 firmed 0.3 per cent to close at 2,057 and the Nasdaq put on 0.3 per cent to close at 4,772.
European markets lifted into the new week: London's FTSE 100 gained 0.3 per cent, France's CAC 40 rose 0.7 per cent and Germany's DAX climbed 1.4 per cent.
Asian markets closed mixed on Monday: Japan’s Nikkei slipped 0.3 per cent, Hong Kong’s Hang Seng added 0.2 per cent, and China’s Shanghai Composite jumped 0.9 per cent.
The Australian share market soared 1.5 per cent on Friday on the back of the European Central Bank’s multi-billion dollar stimulus plans: The S&P/ASX 200 index climbed 82 points on Friday, widening the weekly gain of 203 points to finish the week at 5,502. On the futures market the SPI is 13 points higher.
Currencies
After ending last week below $US0.80 the Australian dollar at 8:20am was buying $US0.7918, 52.5 Pence Sterling, 93.81 Yen and 70.45 Euro cents.
Economic news due out today
ANZ Banking Group
(ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey
National Australia Bank Limited
(ASX:NAB): Business survey for December
The week ahead
The mining sector will be in focus this week with a series of quarterly production reports due. OZ Minerals Limited
(ASX:OZL) and Sandfire Resources NL
(ASX:SFR) will start the ball rolling tomorrow followed by Fortescue Metals Group Limited
(ASX:FMG) on Thursday. Whitehaven Coal Limited
(ASX:WHC), BC Iron Limited
(ASX:BCI) and Newcrest Mining Limited
(ASX:NCM) are due to release output results on Friday. The reports will come following record production numbers from BHP Billiton Limited
(ASX:BHP) and Rio Tinto Limited
(ASX:RIO) last week. Shares in both mining giants gained over last week and on Friday with BHP Billiton rising 1.84 per cent on Friday to close the week at $29.38.
In the energy sector production numbers are also due from the majors. Beach Energy Limited
(ASX:BPT) and Oil Search Limited
(ASX:OSH) will unveil quarterly output figures on Thursday ahead of Paladin Energy Limited
(ASX:PDN) and Origin Energy Limited’s
(ASX:ORG) reports on Friday. In the wake of the falling oil price Senex Energy Limited
(ASX:SXY) last week posted a fall in quarterly output and sales and cut its capital expenditure by 20 per cent. On Friday Santos Limited
(ASX:STO) revealed record quarterly and annual sales revenue on the back of ramped up production. The oil and gas producer’s stock climbed 5.12 per cent on Friday to end the week at $7.80.
Commodities
Gold has dropped $11.90 to $US1,282 an ounce for the February contract on Comex.
Silver has dipped $0.39 to $17.91 for March.
Copper has risen $0.04 to $2.54 a pound.
Oil has slipped $0.39 to $US45.20 a barrel for February light crude in New York.
