The Australian share market looks set to open higher this morning following gains on overseas markets overnight following news that Dubai has received financial aid from Abu Dhabi.
Wall St closed stronger on Monday, with the Dow Jones and S&P500 closing at their highest levels in 14 months on an easing in Dubai’s debt woes, Exxon Mobil’s $41 billion takeover of XTO Energy, and Citigroup’s announcement that it will repay $20 billion in government bailout funds.
US President Barack Obama met with the major banks on Monday. CNN Money says President Obama is expected to urge them to provide greater lending, cut back o bonuses and support financial reform efforts.
Turning to news on Dubai and fears of a default on billions of dollars of debt has been eased after the city-state received $10 billion in financing from Abu Dhabi, another of the United Arab Emirates.
The Dow Jones Industrial Average gained 30 points to 10,501. The S&P500 Index is up 8 to 1,114 and the NASDAQ closed 22 points higher at 2,212.
European markets were higher. London’s FTSE gained 54 points, Paris improved 27 points and Frankfurt increased 46.
Asian markets were mixed: Hong Kong’s Hang Seng rose 184 points. Tokyo’s Nikkei fell 2 and the Shanghai Composite added 56 points.
Back to the local market now and Australian stocks ended higher on Monday. The S&P/ASX 200 Index finished 19 points stronger at 4,654. Looking at the futures market the SPI200’s down 7.
Looking at currencies; the Aussie Dollar at 8.40AM is buying 91.69 US cents, 81.26 Yen, 62.57 Euro cents and 56.23 Pence Sterling.
In economic news: The RBA is to release the minutes from its December 1 board meeting, and the ABS September quarter housing starts data is out today.
In company news about this morning: Shares in electricity distribution business Spark Infrastructure Group (ASX:SKI) fell 0.39 per cent to $1.27 yesterday. The company has raised $225 million in three year debt to help refinance about $750 million due in April 2010. Spark says the syndicated loan facility with Bank of China is a three year $225 million facility maturing in April 2013. The funds will be drawn down under this facility in April 2010 at the time the existing debt matures. Spark raised $625 million in July this year through a private placement in the US to help repay loans held by ETSA Utilities, which it holds a 49% interest in. The company says the surplus $100 million will be used to meet capital expenditure requirements in 2010. Spark Infrastructure’s 2008 net profit came to $9.45 million.
Shares in wine maker Australian Vintage Ltd (ASX:AVG) closed steady at 30 cents yesterday. Together with Constellation Brands, the company has lodged a submission with the Australian Competition and Consumer Commission for formal merger clearance. On November 2 the company announced that it is in discussions with Constellation brands about possibly combining part of Constellation brands Australian and UK wine operations with Australian Vintage in exchange for a non-controlling 50% interest in the combined entity. Australian Vintage says if a transaction is finalized, control of the combined entity will be shared between Constellation and Australian Vintage shareholders. Australian Vintage posted a loss of $123.64 million for fiscal 2009.
Taking a look at ex-dividends now, and going ex-dividend today we have Thorn Group with a 2.56 cent fully franked dividend. Coming up tomorrow is Singapore Telecommunications.
Looking at metals: Gold gained $3.90 to US$1,123.80 an ounce for the February contract on Comex. For the March contract Silver advanced 25 cents to US$17.34 and copper is 2 cents higher at US$3.15.
And the price of oil is $0.36 lower at US$69.51 a barrel for January light crude in New York.
