The Australian share market is expected to open higher after receiving positive leads from overseas markets in offshore trading, with Wall Street indices trading mostly stronger and oil and metals prices firmer.
Late in the overnight session, the US stock market was modestly higher following the release of mixed economic data.
The Institute for Supply Management said its services index rose to 50.1 in December from 48.7 in November. A reading above 50 signals growth.
The news about service companies was balanced by the ADP national employment report that showed employers cut 84,000 private sector jobs in December, worse than market forecasts.
To the figures, the Dow Jones Industrial Average rose 2 points to 10,574. The S&P500 Index added 1 at 1,137 and the NASDAQ lost 8 points at 2,301.
To other markets - European markets were higher. London’s FTSE rose 8 points and Paris added 5 points, and Frankfurt is up 2 points.
Asian markets were mixed: Hong Kong’s Hang Seng gained 137 points, Tokyo’s Nikkei rose 50 and China’s Shanghai Composite fell 28 points.
Back to the local market and Australian stocks closed flat yesterday as positive sentiment towards the resources sector was offset by weakness among some of the major banks. The S&P/ASX 200 Index finished 3 points lower at 4,921 and on the futures market the SPI200’s up 11.
Looking at currencies; the Aussie Dollar at 9:00AM is buying 92.00 US cents, 85.05 Yen, 63.87 Euro cents and 57.47 Pence Sterling.
In local economic news out today, the Australian Bureau of Statistics publishes November figures for international trade in goods and services.
In company news about this morning: Shares in Woolworths (ASX:WOW) closed flat yesterday, down 0.18% to $27.91. Woolworths is rumoured to be looking at the country's biggest maker of pre-mixed drinks, Independent Liquor, as a potential supplier for its fast-growing, private-label beer business. Speculation in the alcohol industry is that the retailing giant has been doing a cost-benefit analysis of Independent Liquor, including an outright acquisition, a partial acquisition or a formal strategic alliance. The business is believed to be worth about $700 million. At this stage Woolworths is yet to comment. Woolworths achieved a $1.8 billion net profit in 2009.
Shares in BHP Billiton (ASX:BHP) gained yesterday, up 1.25% to $43.82. BHP Billiton has won its court case against the Caroona Coal Action Group (CCAG), a group of farmers attempting to stop the mining giant from exploring for coal in Caroona in north-west New South Wales. Yesterday the state’s Land and Environment Court dismissed proceedings brought by the farmers, who had argued the Government had failed to follow due process when it issued BHP's exploration licence. The farmers fear that developing the coalfields could damage aquifers, critical to their livelihood. BHP, which paid $100 million for the rights in 2006, had claimed the licence was a partial transfer of a previous exploration area. BHP Billiton’s 2009 net profit was $7.2 billion.
Looking at companies going ex dividend: and nothing today but on Friday, Abacus is going with a 1.5 cent unfranked dividend. CAM Clime Capital, a 1 cent fully franked dividend and Euroz with a 2 cent fully franked dividend.
To metals: Gold jumped $17.80 to US$1,136.50 an ounce for the February contract on Comex. For the March contract Silver rose 38 cents to US$18.18 and copper is up 8 cents at US$3.49.
And the price of oil is up $1.41 to US$83.18 a barrel for February light crude in New York.
