The Australian share market is likely to open higher this morning following a positive lead form Wall St and gains on European markets at the end of last week after the US economy shed less jobs in November than expected. However falls in oil and metals prices may out pressure on resource stocks today.
Australian stocks ended lower on Friday. The S&P/ASX 200 Index closed 72 points weaker at 4,702. Looking at the futures market the SPI200’s up 23 points.
Looking at currencies; the Aussie Dollar at 8.45AM is buying 91.4 US cents, 82.53 Yen, 61.55 Euro cents and 55.65 Pence Sterling.
In economic news today: The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index for November is due to be released, as well as the ANZ job ads survey also for November.
In company news about this morning: Shares in global miner BHP Billiton Ltd (ASX:BHP) fell 2.52 per cent to $41.40 and fellow mining giant Rio Tinto Ltd (ASX:RIO) declined 2.26 per cent to $71.85 at the end of last week. The two companies have signed off on their proposed US$116 billion iron ore joint venture in Western Australia over the weekend. After reports that the terms of the agreement may be re-negotiated and that Rio may ask for higher payment from BHP the two miners signed binding agreements covering all aspects of the joint venture accounting for all current and future iron ore assets and liabilities in W.A. BHP CEO Marius Kloppers says it is an important milestone towards delivering substantial additional benefits to both sets of shareholders and to shareholders of their respective joint venture partners in the Pilbara. BHP’s 2009 result was significantly lower than its result in 2008 and Rio Tinto’s 2008 net profit was just under half its result the year before.
Shares in Australian miner Felix Resources Ltd (ASX:FLX) gained 0.12 per cent to $16.85 at the end of last week. China has approved its state-owned Yanzhou Coal’s takeover of Felix Resources. According to the Australian a statement released on the Hong Kong Stock Exchange on Friday said that China’s National Development and Reform Commission has approved the deal. The paper reports that Yanzhou’s $16.95 a share offer, which values the company at around $3.5 billion, is the largest investment by a Chinese company in Australia’s minerals sector. Felix shareholders and Canberra have both approved the offer from the Chinese company. Felix Resources 2009 net profit was by far its best in five years recording $267.4 million.
Checking ex-dividends, going today we have Canada Land with 0.08 cent unfranked dividend, and Supply Network with a 4 cent fully franked dividend. Coming up on Wednesday we have Marbletrend Group and on Thursday we have Metcash and Premium Investors.
Turning to overseas markets now, and US markets closed higher on Friday - The Dow Jones Industrial Average gained 23 points. The S&P500 Index is up 6 while the NASDAQ added 21 points.
European markets were also higher. London’s FTSE added 9 points, Paris gained 48 points and Frankfurt advanced 47.
Asian markets were mixed: Hong Kong’s Hang Seng fell 56 points. Tokyo’s Nikkei gained 45 and the Shanghai Composite rose 52 points.
Looking at metals: Gold lost $49.30 to US$1,169 an ounce for the February contract on Comex. For the March contract Silver dropped 61 cents to US$18.52 and copper is a cent lower at US$3.23.
And the price of oil is $0.36 lower at US$76.10 a barrel for January light crude in New York.
