The Australian share market looks set to open stronger this morning after receiving a positive lead from Wall St overnight, higher oil and metals prices likely to give local resource stocks a boost today.
US stocks rallied overnight kick starting the year off on a positive note after an economic report showing a rise in manufacturing activity and a weaker dollar lifting commodity stocks.
In economic news out of the US, the Institute for Supply Management’s manufacturing index rose to a read of 55.9 in December from 53.6 in November. A read above 50 indicates expansion.
A government report showed that construction spending fell 0.6% in November.
And according to CNN Money, Federal Reserve Chairman Ben Bernanke also commented that the central bank’s decision to keep rates near zero between 2002 and 2006 was appropriate and did not cause the housing market bubble.
The Dow Jones Industrial Average gained 156 points to 10,584. The S&P500 Index added 18 at 1,133 and the NASDAQ closed 39 points higher at 2,308.
European markets were also higher. London’s FTSE closed 87 points higher and Paris added 78, and Frankfurt rose 91 points.
Asian markets were mixed: Hong Kong’s Hang Seng declined 49 points, Tokyo’s Nikkei gained 108 and China’s Shanghai Composite lost 33 points.
Back to the local market now and Australian stocks ended higher on Monday. The S&P/ASX 200 Index finished 6 points higher at 4,876, looking at the futures the SPI200’s up 55.
Looking at currencies; the Aussie Dollar at 9:00AM is buying 91.28 US cents, 84.46 Yen, 63.34 Euro cents and 56.74 Pence Sterling.
In company news about this morning: Shares in mineral explorer Copper Range Ltd (ASX:CRJ) closed flat at $0.03 yesterday. The company says it has begun a gravity survey on four high priority iron ore targets in the Caltowie Project area, with drilling programs planned to commence in 2010. The company says the gravity programs are targeting several large magnetic anomalies identified within five kilometres of a major railway line. Copper Range says the Adelaide Fold Belt has the potential to be Australia’s next iron ore field. Copper Range posted a loss for the 12 months to June 30, 2009.
Shares in iron ore explorer Western Plains Resources Ltd (ASX:WPG) also closed flat yesterday at 30 cents. The company says that it and Chinese owned Wugang Australian Resources have agreed to a further three month extension to the period to complete their joint venture. The Hawks Nest magnetite project is located in the Woomera Prohibited Area, a weapons testing range in South Australia. Western Plains Resources says the remaining significant condition precedent still not satisfied is the consent of the Treasurer of the Commonwealth of Australia. Australia’s Department of Defense has said it will not support the joint venture plans. Western Plains Resources reported a loss for the 2009 financial year.
Taking a look at companies going ex dividend: And there is just one company going ex-dividend today and that is Aberdeen Leaders with a 2 cent fully franked dividend.
Looking at metals: Gold up $22.10 to US$1,118.30 an ounce for the February contract on Comex. For the March contract Silver rose 62 cents to US$17.46 and copper is up 6 cents at US$3.41.
And the price of oil is $2.15 higher at US$81.51 a barrel for February light crude in New York.
