The Australian share market looks set to gain as it opens after a positive U.S. session overnight.
Wall Street posted its third straight gain in a row in light trade as economic news showed improvement in the U.S. housing market. Existing U.S. home sales surged 7.4 per cent in November to the highest level since February 2007 as buyers took advantage of tax credits. The market generally overlooked a slightly lower than expected read on third quarter GDP.
Oil prices rose overnight after major oil producers decided to leave production volumes unchanged which could bring short-term stability for energy prices.
The Dow Jones Industrial Average gained 51 points to 10,465. The S&P500 Index is up 4 to 1,118 and the NASDAQ closed 15 points stronger at 2,253.
European markets were higher. London’s FTSE gained 35 points, Paris added 26 points and Frankfurt rose 15.
Asian markets were mixed: Hong Kong’s Hang Seng gained 144 points. Tokyo’s Nikkei improved 195 while the Shanghai Composite lost 72 points.
Back to the local market now and Australian stocks ended higher on Wednesday. The S&P/ASX 200 Index finished 69 points higher at 4,704. Looking at the futures market the SPI200’s up 20.
Looking at currencies; the Aussie Dollar at 8.50AM is buying 87.62 US cents, 80.46 Yen, 61.47 Euro cents and 54.88 Pence Sterling.
In economic news due out today we have the Australian Bureau of Statistics September quarter financial accounts.
In company news about this morning: BHP Billiton (ASX:BHP) shares finished 1.71% higher at $41.65 yesterday. The mining giant has sold its 40% stake in an undeveloped nickel mining and processing project in the southern Philippines. The project’s other Philippino partner, Asiaticus, bought the stake. It is BHP’s second exit from nickel projects in four months. BHP and Asiaticus have not previously agreed over when to start production with BHP not looking for production before 2015. BHP reported a 2009 net profit of $7.243 billion for the year to June 30.
Qantas shares finished 1.39% higher yesterday at $2.92. Late yesterday the airline announced that it will soon begin flying the A380 super-jumbo from Melbourne to London and confirmed that it will have six of the giant Airbus’ operational by January 18, each coating $US300 million. The announcement came a day after predicting a return to profitability. Qantas posted a 2009 net profit of $117 million for the year ended June 30.
Looking at metals: Gold fell $9.30 to US$1,086.70 an ounce for the February contract on Comex. For the March contract Silver slipped 1 cent to US$17.03 and copper is down 2 cents at US$3.14.
And the price of oil is 68 cents higher at US$74.40 a barrel for February light crude in New York.
