Following mixed overseas leads, the Australian sharemarket is expected to open flat today after US stocks finished almost unchanged overnight. But market insiders are tipping the local bourse to maintain its positive momentum in the face of a stronger Australian Dollar, iron ore prices and a likely “chilled” Reserve Bank meeting.
Data released by the Commerce Department showed consumer spending remained flat in December. Meanwhile factory activity edged up in January, according to the Institute for Supply Management.
Markets
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 0.1 per cent to close at 16,449, the S&P 500 lost 0.04 per cent to close at 1,939 and the NASDAQ added 0.1 per cent to close at 4,620.
European markets closed lower: London’s FTSE lost 0.4 per cent, Paris lost 0.6 per cent and Frankfurt lost 0.4 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 2 per cent, Hong Kong’s Hang Seng lost 0.45 per cent, and China’s Shanghai Composite lost 1.8 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 38 points up to finish at 5044. On the futures market the SPI is 1 point down.
Currencies
The Australian Dollar at 8:30AM was buying $US0.7117 cents, 49.32 Pence Sterling, 86.12 Yen and 65.36 Euro cents.
Economic news
The Reserve Bank of Australia will meet for the first time in 2016 today to hand out its Official Cash rate and RBA statement. The Reserve Bank is expected to keep the cash rate unchanged but, as always, investors will be keeping a keen ear out for hints of easing bias.
Company news
Fletcher Building Limited
(ASX:FBU) is set to acquire New Zealand road construction and maintenance business Higgins Group Holdings Limited for a total consideration of NZ$315 million. The company also announced changes to its divisional structure alongside new executive appointments. The new structure will see Fletcher building organized into five divisions. Shares in Fletcher Building closed 1.75 per cent up yesterday at $6.41.
National Australia Bank Limited
(ASX:NAB) demerger of CYBG Plc has been approved by the Supreme Court of Victoria. This follows shareholder endorsement of the proposal at the scheme meeting and general meeting held on Wednesday. NAB Group CEO Andrew Thorburn said the approval is a significant step in the separation of NAB and CYBG into two independent corporate groups. Shares in NAB closed 0.61 per cent up yesterday at $27.83.
Ex-dividends | Name | Code | Date | Amount(cents) | Franking |
| Amcbf Five | AKY | 2/02/16 | 2.0 | 0 |
| Amyf One Ltd | AYD | 2/02/16 | 32.0 | 100 |
| Amyf Two Ltd | AYH | 2/02/16 | 69.0 | 100 |
| Amyf Three Ltd | AYJ | 2/02/16 | 86.0 | 100 |
| Amyf Four Ltd | AYK | 2/02/16 | 62.0 | 100 |
| Aymf Five Ltd | AYZ | 2/02/16 | 89.0 | 100 |
Commodities
Gold has gained $13.30 to $US1,130 an ounce for the April contract on Comex.
Silver has gained $0.11 to $14.35 for March.
Copper has lost $0.01 to $2.06 a pound.
Oil has lost $2.21 to $US31.41 a barrel for March light crude in New York.
