The Australian share market is likely to open higher this morning after US stocks rallied overnight as concerns for Dubai’s debt problems receded and gold skyrocketed above $1,200 the highest it’s ever traded - which will give gold miners a boost today.
Australian stocks ended higher on Tuesday. The S&P/ASX 200 Index closed 18 points stronger at 4,719. Looking at the futures market the SPI200’s up 51 points.
Looking at currencies; the Aussie Dollar at 8.40AM is buying 92.52 US cents, 80.28 Yen, 61.34 Euro cents and 55.69 Pence Sterling.
In company news about this morning: Shares in Westpac Banking Corporation (ASX:WBC) rose 0.17 per cent to $24.18 yesterday. The bank has increased its standard variable mortgage rate by 45 basis points, 20 basis points higher than the 25 basis point rise to the Official Cash Rate announced yesterday by the RBA. According to the Sydney Morning Herald Treasurer Wayne Swan was quick to rebuke the bank saying there is no just reason for the bank to raise rates above the RBA’s 25 basis points. Higher wholesale funding costs are being blamed for the decision, with the other major banks expected to announce rises over the next few days. Westpac’s 2009 net profit dropped from its high the year before of $3.859 billion.
Shares in agricultural chemicals maker Nufarm Ltd (ASX:NUF) fell 3.1 per cent to $11.24 yesterday. The company says China’s Sinochem is still very interested in acquiring the company but is still assessing the results of its due diligence. Sinochem is offering to acquire all the issued shares in Nufarm for $13 cash a share which values the company at $2.8 billion. In September the two companies agreed to work together on an exclusive basis to conduct due diligence and negotiate a transaction implementation agreement by December 3 2009, however Nufarm says the parties are not in a position to execute this agreement by that time. Nufarm’s 2009 net profit was $79.87 million, down on the year before.
Checking ex-dividends, and there is just one company going ex-dividend today and that is Newmont Mining with a 0.94 cent unfranked dividend. Coming up tomorrow is Fisher & Paykel Healthcare.
Looking at overseas markets; US markets closed higher on Tuesday - The Dow Jones Industrial Average rose 127 points. The S&P500 Index is 13 points higher and the NASDAQ added 31 points.
European markets were also stronger. London’s FTSE rose 121 points, Paris gained 96 points and Frankfurt advanced 151.
Asian markets were higher: Hong Kong’s Hang Seng is up 292 points. Tokyo’s Nikkei gained 227 and the Shanghai Composite is up 40 points.
Looking at metals: Gold added $17.90 to US$1,200.20 an ounce for the February contract on Comex the precious metal touching $1,202.70 overnight its highest level ever traded. For the March contract Silver up 68 cents to US$19.20 and copper is 5 cents higher at US$3.23.
And the price of oil is $1.09 higher at US$78.37 a barrel for January light crude in New York.
