The Australian share market looks set to open mildly firmer this morning. The mixed session on Wall Street won’t provide a clear direction as stocks broke a four day winning streak on a late stage sell off.
In the U.S., the Federal Reserve left interest rates unchanged, saying market conditions were helping the recovery but weakness will persist.
The Commerce Department showed that the Consumer Price Index for November rose 0.4%, matching expectations.
The Dow Jones Industrial Average lost 11 points to 10,441. The S&P500 Index is up 1 to 1,109 and the NASDAQ closed 6 points higher at 2,207.
European markets were higher. London’s FTSE gained 34 points, Paris improved 42 points and Frankfurt increased 92.
Asian markets were mixed: Hong Kong’s Hang Seng fell 202 points. Tokyo’s Nikkei up 94 and the Shanghai Composite declined 19 points.
Back to the local market now and Australian stocks ended lower on Wednesday. The S&P/ASX 200 Index finished 12 points weaker at 4,662. Looking at the futures market the SPI200’s up 6.
Looking at currencies; the Aussie Dollar at 8.45AM is buying 90.08 US cents, 80.89 Yen, 61.98 Euro cents and 55.17 Pence Sterling.
In economic news: The RBA’s December bulletin will be released. The Australian Bureau of Statistics will release merchandise imports for November and the Australian Chamber of Commerce and Industry-Westpac industrial trend survey will be released.
In company news about this morning: Woodside Petroleum (ASX:WPL) shares are in a trading halt as the company is currently undertaking a $2.5 billion equity and last traded at $47.18. Woodside’s $13 billion Pluto project will be disrupted by a four-day strike by employees from contractor Total Marine Services. The workers have voted unanimously to begin the strike tomorrow and are demanding higher wages to provide services to the offshore oil and gas rigs. This is the second strike at the project this month after a two-day dispute over accommodation. A Macquarie Group analyst said in a report last week that a skills shortage could emerge because of the number of energy and mining projects being built. Woodside Petroleum reported a 2008 net profit of $1.786 billion for the year ended December 30.
Iron Ore Holdings (ASX:IOH) shares last traded at $1.55. Shares are expected to come out of a trading halt today after the comapny reached an agreement with Rio Tinto (ASX:RIO) that allows six months in which to negotiate Rio's acquisition of Iron Ore Holding's flagship Iron Valley iron ore deposit in the Pilbara. Iron Ore Holdings, which is 52 percent owned by Kerry Stokes, is also expected to announce a sales agreement with Rio for its smaller Phil's Creek project which will see it become a producer of 1.5 million tonne-a-year of iron ore next year. Iron Ore Holdings reported a 2009 net loss of $6.79 million for the year ended June 30.
Taking a look at ex-dividends now, and there are no companies going ex dividend today but coming up next week is Bunnings Warehouse Property Trust, Challenger Diversified Property Trust and Macquarie Airports.
Looking at metals: Gold gained $13 to US$1,136 an ounce for the February contract on Comex. For the March contract Silver advanced 24 cents to US$17.70 and copper is 7 cents higher at US$3.21.
And the price of oil is $1.97 higher at US$72.66 a barrel for January light crude in New York.
