The Australian share market looks set to open higher today following a relief rally in the US. A solid rebound in Wall Street was led by energy companies after a 2 per cent jump in crude oil prices.
Oil companies were the Dow’s top gainers. Chevron jumped 5.1 per cent whilst Exxon Mobil advanced 4.6 per cent.
US economic news
The number of people who applied for jobless benefits in the first full week of January rose 7,000 to a seasonally adjusted 284,000. This brings the four week average to 278,750, its highest level in six months.
Markets
Wall Street closed with strong gains yesterday: The Dow Jones Industrial Average gained 1.4 per cent to close at 16,375, the S&P 500 added 1.7 per cent to close at 1,922 and the NASDAQ advanced 2 per cent to close at 4,616.
European markets closed lower: London’s FTSE shed 0.7 per cent, Paris lost 1.8 per cent and Frankfurt slipped 1.7 per cent.
Asian markets closed mixed: Tokyo’s Nikkei retreated 2.7 per cent, Hong Kong’s Hang Seng dipped 0.6 per cent, and China’s Shanghai Composite advanced 2 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 78 points down to finish at 4,909. On the futures market the SPI is pointing 43 points higher.
Currencies
The Australian Dollar at 8:20AM was buying 69.85 US cents, 48.49 Pence Sterling, 82.47 Yen and 64.32 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is housing finance for November. Analysts are tipping investor loans will see a drop while loans to owner occupiers should remain steady.
Company news
BHP Billiton Limited
(ASX:BHP) has seen its stock price plunge to the lowest levels in over a decade. The mining giant has since seen broker upgrades with CitiGroup now rating the stock a ‘buy’. Shares in BHP Billiton last traded 0.74 per cent higher at $14.88.
And some brokers are betting the woes of Dick Smith Holdings
(ASX:DSH) will bode well for JB-HiFi Limited
(ASX:JBH). Credit Suisse has upped its investment rating for the retailer to óutperform’ and has raised its target price to $25.05. Shares in JB Hi-Fi last traded 1.14 per cent lower to $21.70.
Ex-Dividends One company is trading ex-dividend today: Abacus Property Group
(ASX:ABP) will pay 8.5 cents with no franking.
Commodities
Gold has shed $10 to US$1,077 an ounce for the February contract on Comex. Silver has slipped 31 cents to $13.85 for March. Copper has added 2 cents to $1.98 a pound. Oil has advanced 70 cents to US$32.09 a barrel for February light crude in New York.
