The Australian share market is likely to open higher this morning following Wall St’s rally overnight on a combination of analyst’s upgrades, corporate deals and after a key healthcare reform bill advanced in the Senate.
At the start of a shorter trading week, US stocks gained overnight, health-care stocks surged after the Senate voted to end debate on revisions to a key health-care-reform bill, taking the bill a step closer to being finalised.
The health-care sector also rose on news that Sanofi-Aventis is to buy retail health products maker Chattem in a deal worth $1.9 billion.
The Dow Jones Industrial Average gained 85 points to 10,414. The S&P500 Index is up 12 to 1,114 and the NASDAQ closed 26 points stronger at 2,238.
European markets were higher. London’s FTSE gained 97 points, Paris added 78 points and Frankfurt rose 99.
Asian markets were mixed: Hong Kong’s Hang Seng lost 228 points. Tokyo’s Nikkei gained 41 and the Shanghai Composite rose 9 points.
Back to the local market now and Australian stocks ended lower on Monday. The S&P/ASX 200 Index finished 15 points lower at 4,635. Looking at the futures market the SPI200’s up 33.
Looking at currencies; the Aussie Dollar at 8.35AM is buying 88.18 US cents, 80.4 Yen, 61.73 Euro cents and 54.94 Pence Sterling.
In company news about this morning: Shares in oil and gas company Nexus Energy Ltd (ASX:NXS) dropped 1.61 per cent to $0.305 yesterday. The company says Managing Director Ian Tchacos has been made redundant and is leaving the company immediately. According to the Australian Financial Review this morning, Mr Tchacos departure appears to be linked to his inability to find a potential backer for the company’s Crux gas field in the Browse Basin offshore Western Australia. Nexus says it will now commence a global search for a new CEO with Michael Fowler continuing as Executive Chairman to oversee the management of the company and the recruitment process. Nexus Energy posted a $50.42 million loss for the 12 months to June 30, 2009.
Shares in diversified resources company Straits Resources Ltd (ASX:SRL) declined 0.96 per cent to $1.54 yesterday. The company says it has entered into a five year club financing facility for US$380 million. The facility will be used to refinance an existing US$255 million facility, provide US$50 million for working capital and a US$80 million letter of credit/bank guarantee. The loan requires no repayments for a period of three years, and following that Straits will repay installments of US$40 million every six months with the balance to be repaid by January 2015. Straits Resources posted a loss of $42.11 million in 2009.
Taking a look at ex-dividends now, and while there are no companies going ex-dividend today among those going tomorrow we have APA Group and Bunning’s Warehouse.
Looking at metals: Gold fell $15.50 to US$1,096 an ounce for the February contract on Comex. For the March contract Silver slipped 29 cents to US$17.04 and copper is up 2 cents at US$3.16.
And the price of oil is 81 cents lower at US$72.55 a barrel for January light crude in New York.
