The Australian share market is likely to open mildly firmer as gold and metal prices will boost local materials stocks while oil companies could drag as crude prices declines overnight on a report that showed an increase in supply.
U.S. markets were mixed as financials and energy companies were sold off while online retailers supported the Nasdaq.
Australian stocks ended higher on Wednesday. The S&P/ASX 200 Index closed 43 points stronger at 4,762. Looking at the futures market the SPI200’s up 6 points.
Looking at currencies; the Aussie Dollar at 8.55AM is buying 92.49 US cents, 80.85 Yen, 61.5 Euro cents and 55.62 Pence Sterling.
In company news about this morning: Newscorp shares lost 0.79% to $14.98 yesterday. The Australian Taxation Office is claiming that Rupert Murdoch's News Corporation contrived a $1.5 billion capital loss to avoid tax. The ATO has asked the Federal Court to overturn an the decision made by the Administrative Appeals Tribunal in September that found the loss from the company's global restructure four years ago was legitimate. Newscorp reported a sharp net loss in 2009 after a solid history of net profit growth.
Bank of Queensland shares gained 4.76% yesterday to $11.66. The bank has announced plans to raise $1.1 billion from debt investors, the third time it has taken advantage of the government’s funding guarantee. The bank also called for the Government to allows banks to rent out the Commonwealth's AAA credit rating for a flat fee charged to all banks to lower the relative borrowing costs to regional banks and help them compete in the retail loan market. Currently, the four major banks which have an AA credit rating pay an extra 70 basis points annually for bonds while the smaller banks pay 100 to 150 basis points extra, something Bank of Queensland wants changed. Looking at the last 5 years, Bank of Queensland has managed to post increasing net profit results.
In ex-dividends, there is just one company going ex-dividend today and that is Fisher & Paykel Healthcare which will pay a 4.29 cent unfranked dividend. While tomorrow will see E & A Ltd go ex-div.
US markets closed mixed on Wednesday - The Dow Jones Industrial Average lost 19 points. The S&P500 Index was steady while the NASDAQ added 9 points.
European markets were stronger. London’s FTSE rose 15 points, Paris gained 20 points and Frankfurt advanced 5.
Asian markets were higher: Hong Kong’s Hang Seng is up 176 points. Tokyo’s Nikkei gained 37 and the Shanghai Composite is up 34 points.
Looking at metals: Gold added $12.80 to US$1,213 an ounce for the February contract on Comex. For the March contract Silver is up 12 cents to US$19.33 and copper is 3 cents higher at US$3.26.
And the price of oil is $1.77 lower at US$76.60 a barrel for January light crude in New York.
