The Australian share market looks like it may be in for a cautious start this morning after Wall St closed lower on Thursday last week before the New Year’s holiday, however stronger oil and metals prices are likely to give resource stocks a boost today.
US stocks closed a thinly traded session lower on Thursday of last week on profit taking.
Stocks received a boost early after a government report showed that the number of people filing new claims for unemployment fell to 432,000 in the week before last, the lowest level since July 2008.
The Dow Jones Industrial Average lost 120 points on Thursday the 31st of December to 10,428. The S&P500 Index dropped 11 at 1,115 and the NASDAQ closed 22 points lower at 2,269.
European markets were mixed. On the 31st of December London’s FTSE closed 15 points higher and Paris added almost a point, while on the 30th of December Frankfurt declined 54.
Asian markets were also mixed: On the 31st of December Hong Kong’s Hang Seng gained 376 points, for the 30th of December Tokyo’s Nikkei fell 92 and China’s Shanghai Composite rose 15 points for the 31st of December.
Back to the local market now and Australian stocks ended higher on Thursday last week. The S&P/ASX 200 Index finished 37 points higher at 4,871.
Looking at currencies; the Aussie Dollar at 8:45AM is buying 89.86 US cents, 83.61 Yen, 62.74 Euro cents and 55.58 Pence Sterling.
In company news about this morning: Shares in National Australia Bank Ltd (ASX:NAB) last traded at $27.40. There are reports that the bank is preparing to launch a takeover bid for UK lender Northern Rock. At the company’s annual general meeting, CEO Cameron Clyne told investors that the bank has received interest in its Clydesdale and Yorkshire banks in the United Kingdom. British newspaper The Observer says NAB may also enter the bidding race for hundreds of branches being sold by Royal Bank of Scotland and Lloyds. NAB recorded net profit for the year to September 30, 2009 of $2.6 billion.
Shares in mineral explorer Amex Resources Ltd (ASX:AXZ) last traded at 19 cents. The company says it has an inferred resource of 153.5 million tonnes at 7.3% magnetite iron sands at its project in Fiji. The company says the resource is hosted within alluvial magnetite rich sands at the mouth of the Mba River in the north west of Viti Levu, Fiji. Amex says preliminary work has confirmed that the iron sands readily produce a magnetite concentrate with an iron content in excess of 58% and desirable metallurgical characteristics. A scoping study is due for completion in the first quarter of 2010. Amex Resources posted a loss for fiscal 2009.
Taking a look at companies going ex dividend: Going today we have Tower Australia Group with a 5.25 cent fully franked dividend, and Tutt Bryant with a 2 cent fully franked dividend.
Looking at metals: As at the 31st of December, Gold up $4 to US$1,096.50 an ounce for the February contract on Comex. For the March contract Silver rose 2 cents to US$16.82 and copper is down a cent at US$3.34.
And the price of oil is $0.12 higher at US$79.40 a barrel for February light crude in New York.
