Despite weak leads from Wall Street, the Australian share market looks set to open higher. US indices had a soft session following the Thanksgiving holiday as investors eye a hectic macro data week ahead including Friday’s Non-Farm Payrolls report. Consumer stocks weighed on US stocks as Black Friday showed stores could face difficulties over the holiday period as more consumers turn to online.
The number of US existing home sales rose 0.2 percent in October. The data released by the National Association of Realtors came in below expectations of a 1.6 percent increase.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.4 per cent to close at 17,720, the S&P 500 lost 0.5 per cent to close at 2,080 and the NASDAQ lost 0.4 per cent to close at 5,109.
European markets closed mixed: London’s FTSE lost 0.3 per cent, Paris gained 0.6 per cent and Frankfurt gained 0.8 per cent.
Asian markets closed mixed: Tokyo’s Nikkei lost 0.7 per cent, Hong Kong’s Hang Seng lost 0.3 per cent, and China’s Shanghai Composite gained 0.3 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 36 points down to finish at 5,167. On the futures market the SPI is 2 points up.
Currencies
Tthe Australian Dollar at 8:20AM was buying $US0.7231 cents, 48.03 Pence Sterling, 89.01 Yen and 68.44 Euro cents.
Economic news
The Reserve Bank will meet for the final time this year to determine interest rates. Market insiders are confident the RBA will keep the cash rate at 2 percent, as analyst’s follow governor Glenn Stevens guidance that participants should “chill out and see what the economic data says”.
Company news
Spark New Zealand Limited
(ASX:SPK) finance arm has launched a fixed rate retail bond offer. The company announced it is offering up to NZ$100 million unsecured, unsubordinated fixed rate bonds to institutional and New Zealand retail investors. The bonds have a maturity date of 2023 and the indicative margin for the bonds is 1.10-1.15 percent per annum. Shares in Spark New Zealand closed 0.99 per cent lower yesterday at $3.00.
St Barbara Limited
(ASX:SBM) has repaid US$20 million in advance against its loan facility with RK Mine Finance. The gold producer said sustained operational performance at its Gwalia and Simberi mines has enabled the accelerated reduction in debt. Shares in St Barbara closed 11.35 per cent lower yesterday at $1.01.
Ex-dividends
1 company is going ex-dividend today: Newhaven Hotels will pay a dividend of 35c fully franked.
Commodities
Gold has gained $7.80 to $US1,064 an ounce for the December contract on Comex.
Silver has gained $0.01 to $14.06 for December.
Copper has lost $0.01 to $2.05 a pound.
Oil has lost $0.01 to $US41.71 a barrel for January light crude in New York.
