The Aussie market is expected to open mildly higher today although materials stocks could be pressured by lower metal prices overnight. U.S. markets were choppy overnight but closed ahead after an upgrade of 3M and a report showing improved wholesale inventories provided some optimism. U.S. Treasury Secretary Timothy Geithner said on Wednesday in a letter to Congress that the Troubled Asset Relief Program will be extended until October 3, 2010 however he said it will be scaled back and refocused on preventing foreclosures and making loans to small businesses.
The Dow Jones Industrial Average gained 51 points to 10,337. The S&P500 Index is up 4 to 1,096 and the NASDAQ improved 11 points to 2,184.
European markets were lower. London’s FTSE down 19 points, Paris dropped 28 points and Frankfurt declined 41.
Asian markets were weaker: Hong Kong’s Hang Seng fell 319 points. Tokyo’s Nikkei dropped 136 and the Shanghai Composite declined 57 points.
Back to the local market now and Australian stocks ended lower on Wednesday. The S&P/ASX 200 Index finished 33 points lower at 4,638. Looking at the futures market the SPI200’s up 5.
Looking at currencies; the Aussie Dollar at 8.20AM is buying 90.89 US cents, 79.88 Yen, 61.72 Euro cents and 55.88 Pence Sterling.
In economic news today: The ABS will report labour force data for November. The Westpac-Melbourne Institute survey of consumer unemployment expectations for December will be released and the Melbourne Institute will announce its survey of consumer inflationary expectations for December. In company news about this morning: Shares in Challenger Financial Services closed 2.71%higher at $4.17 yesterday. Challenger Financial Services’ annuities business, Challenger Life, has launched a takeover bid for the listed Challenger Kenedix Japan Trust. The bid was for $1 a share which was almost 50% higher than the shares last traded price. Challenger Life chief executive Richard Howes said that this is a one off and that there is no intention to make other offers for other Challenger listed funds. Challenger Financial Services reported a net loss in 2009 of $90.7 million.
Shares in Suncorp-Metway improved 1.4% yesterday to $8.72 and Bendigo and Adelaide bank shares gained 0.34% to $8.79. The banks have formed an alliance that will see each bank double the number of ATMs in their network. This deal is part of tie ups that are happening elsewhere in the banking sector with Commonwealth and NAB both increasing their ATM networks with agreements with other organisations. Suncorp and Bendigo’s clients will have access to 1,600 ATMs if the alliance is approved and would start in March 2010. Suncorp-Metway reported a 2009 net profit of $348 million. Bendigo and Adelaide Bank’s net profit in 2009 was $83.8 million.
Checking ex-dividends, and there are two companies going ex-dividend today. Metcash will pay 11 cents fully franked and Premium Investors will pay a 3.5 cent fully franked dividend.
Looking at metals: Gold fell $22.40 to US$1,121 an ounce for the February contract on Comex. For the March contract Silver dropped 63 cents to US$17.18 and copper is 4 cents lower at US$3.13.
And the price of oil is $1.95 lower at US$70.67 a barrel for January light crude in New York.
