The Aussie market is expected to open higher this morning, following the trend set by overseas markets overnight.
U.S. markets finished ahead overnight on broad based gains, driven by optimism about the economy. The Commerce Department said that the nation's trade gap narrowed to $32.9 billion in October from $35.7 billion in September thanks to a jump in exports and the result was better than expected.
The Treasury Department reported a $120.3 billion deficit for the month of November, but the result was far below the $176 billion recorded for October and about $5 billion less than November last year.
Another report showed that housing foreclosures have fallen and these positive reports inspired buying in the market.
The Dow Jones Industrial Average gained 69 points to 10,406. The S&P500 Index is up 6 to 1,102 and the NASDAQ improved 7 points to 2,191.
European markets were higher. London’s FTSE gained 40 points, Paris improved 41 points and Frankfurt increased 61.
Asian markets were mixed: Hong Kong’s Hang Seng fell 42 points. Tokyo’s Nikkei dropped 142 but the Shanghai Composite gained 15 points.
Back to the local market now and Australian stocks ended lower on Thursday. The S&P/ASX 200 Index finished 31 points behind at 4,607. Looking at the futures market the SPI200’s up 26.
Looking at currencies; the Aussie Dollar at 8.35AM is buying 91.73 US cents, 80.93 Yen, 62.27 Euro cents and 56.34 Pence Sterling.
In company news about this morning: Leighton Holdings (ASX:LEI) shares gained 0.11% yesterday to $36.06. The company has promoted long serving executive Bill Wild to the role of deputy chief executive prompting speculation about succession planning for the top job, a position held for 20 years by Wal King. Reports this morning in the Financial Review and The Sydney Morning Herald suggest that insiders were surprised by the move because it was assumed senior executive David Stewart was the leading candidate to eventually replace Mr King. Since April Mr Stewart and Mr Wild have shared the dual role of chief operating officer. Leighton Holdings reported a 2009 net profit of $440 million.
CSL shares closed 1.15% lower at $30.15 yesterday. The pharmaceuticals and blood plasma giant said yesterday at an investor briefing that it plans to develop a product to treat coronary heart disease. Clinical trials would start next year for heart attack patients. The drug works by carrying away cholesterol from the walls of arteries. CSL also said it is developing a vaccine to treat the gum disease periodontitis. CSL plans to spend $350 million in research and development in 2010. CSL reported a 2009 net profit of $1.146 billion.
There are no companies going ex-dividend today but next week will see Thorn Group and Singapore Telecommunications.
Looking at metals: Gold gained $5.50 to US$1,126.40 an ounce for the February contract on Comex. For the March contract Silver improved 3 cents to US$17.21 and copper is 2 cents lower at US$3.10.
And the price of oil is $0.13 lower at US$70.54 a barrel for January light crude in New York.
