The Australian share market looks like it may be in for a positive start today following a late rally on Wall St at the end of last week, with local resource stocks likely to get a boost from higher oil and some metals prices.
US stocks closed higher on Friday of last week as investors managed to rise above a weak jobs report looking to other recent signs that the economy is on the mend.
On Friday the Labor Department reported that employers slashed 85,000 jobs from their payrolls in December. This surprised economists who had expected no change.
Another report showed a 1.5% rise in wholesale inventories in November following a 0.6% rise in October, economists had expected a fall of 0.3%.
And a separate report showed that consumer borrowing dropped by $17.5 billion in November, way more than the $5 billion expected.
To the figures, the Dow Jones Industrial Average rose 11 points to 10,618. The S&P500 Index added 3 at 1,145 and the NASDAQ gained 17 points at 2,317.
To other markets - European markets were also higher. London’s FTSE added 8 points and Paris rose 20 points, and Frankfurt advanced 18 points.
Asian markets were stronger: Hong Kong’s Hang Seng gained 27 points, Tokyo’s Nikkei added 117 and China’s Shanghai Composite increased 3 points.
Back to the local market and Australian stocks closed higher last Friday. The S&P/ASX 200 Index finished 13 points higher at 4,912 and on the futures market the SPI200’s up 30.
Looking at currencies; the Aussie Dollar at 8:35AM is buying 92.98 US cents, 85.95Yen, 64.41 Euro cents and 57.85 Pence Sterling.
In economic news out today: The ANZ job advertisements for December is to be released.
In company news about this morning: Shares in investment bank Macquarie Group Ltd (ASX:MQG) gained 0.85 per cent to $48.90 last Friday. There are reports that the group has joined together with Canadian Pension Plan and Abu Dhabi Investment Authority to bid for a UK electricity network. According to a report in the Sunday Telegraph Macquarie and its partners are planning a 4 billion pound offer for the asset which is owned by French utility EDF, and supplies power to millions of homes in the south of England. Macquarie Group reported profit of $871 million for the 12 months to March 30, 2009.
Shares in ASX listed New Zealand company Auckland International Airport Ltd (ASX:AIA) closed steady at $1.65 last Friday. The company has bought Westpac banking Corporation (ASX:WBC) 24.55% stake in North Queensland Airports for $132.8 million. Reuters reports Auckland Airport Chairman Tony Frankham saying that this is a significant milestone for the company and for its strategy to grow beyond its core business in Auckland. North Queensland Airports operates the Cairns and Mackay Airports in Queensland. Auckland International Airport reported a profit of $33.57 million for fiscal 2009. Looking at companies going ex dividend: and today we have Allied Brands with a 0.5 cent fully franked dividend, Environmental Group with a 0.2 cent fully franked dividend, Newhaven Hotels with a 4 cent fully franked dividend, and Tower with a 6.24 cent unfranked dividend.
To metals: Gold rose $5.50 to US$1,139.20 an ounce for the February contract on Comex. For the March contract Silver rose 12 cents to US$18.46 and copper is down 3 cents at US$3.40.
And the price of oil is up $0.59 to US$83.25 a barrel for February light crude in New York.
