The Australian share market looks like it may be in for a flat start this morning following a mixed lead from Wall St at the end of last week after better than expected retail sales and consumer sentiment lifted blue chip stocks, however weakness in technology stocks and a stronger dollar limited gains.
In the US the Commerce Department released data showing a 1.3% rise in retail sales for November. Forecasts were for only a slight rise of 0.7%.
And the University of Michigan’s consumer sentiment index rose to 73.4 from 67.4, above forecasts for a rise to 68.8.
Locally lower oil and gold prices may hurt resource stocks today.
The Dow Jones Industrial Average gained 66 points to 10,472. The S&P500 Index is up 4 to 1,106 and the NASDAQ closed flat at 2,190.
European markets were higher. London’s FTSE gained 17 points, Paris improved 5 points and Frankfurt increased 47.
Asian markets were mixed: Hong Kong’s Hang Seng rose 202 points. Tokyo’s Nikkei gained 245 but the Shanghai Composite lost 7 points.
Back to the local market now and Australian stocks ended higher on Friday. The S&P/ASX 200 Index finished 29 points stronger at 4,635. Looking at the futures market the SPI200’s down 3.
Looking at currencies; the Aussie Dollar at 8.35AM is buying 91.17 US cents, 81.14 Yen, 62.34 Euro cents and 56.1 Pence Sterling.
In economic news: the ABS is to release lending finance data for October today.
In company news about this morning: Shares in Origin Energy Ltd (ASX:ORG) fell 0.57 per cent to $15.80 on Friday. The company has officially opened its Mt Stuart Power Station expansion in Townsville boosting North Queensland’s power supply. Executive General Manager for energy markets Frank Calabria, says the new 126 mega watt generator will meet the peak electricity demand of up to 75,000 homes. Mr Calabria says the Mt Stuart upgrade, at a cost of $110 million, is part of the company’s strategy to almost double its total generating capacity to 2,800 megawatts by the end of 2010. Origin Energy earned $6.9 billion in fiscal 2009.
Shares in renewable energy generation company Geodynamics Ltd (ASX:GDY) closed steady at 81.5 cents on Friday. The company has been awarded a $7 million geothermal grant from the federal government. Geodynamics is among four listed companies including; Hot Rock, Greenearth Energy and Torrens Energy who are to receive funds as part of the government’s $50 million geothermal drilling program. Geothermal energy is created by pumping water deep underground into naturally occurring hot spots and bringing the heated water back to the surface to generate power. Geodynamics posted a loss of $15.31 million in 2009.
There are no companies going ex-dividend today however tomorrow we have Thorn Group and on Wednesday Singapore Telecommunications is going ex-dividend.
Looking at metals: Gold dropped $6.60 to US$1,119.60 an ounce for the February contract on Comex. For the March contract Silver fell 10 cents to US$17.09 and copper is 3 cents higher at US$3.13.
And the price of oil is $0.89 lower at US$69.65 a barrel for January light crude in New York.
