AUD stronger, oil prices down: Aus shares to open flat

The Australian share market is expected to open flat this morning according to ASX futures – despite positive leads from Wall Street.

Wall Street finished higher this morning, with the biggest gains seen in Energy, Telecoms and Healthcare shares.

However, oil prices fell 2.5% overnight over concerns that Libya may increase production. This is despite an agreement currently in force amongst OPEC and non-OPEC producers to cut oil production by 1.8 million barrels per day.

US economic news

Two sets of manufacturing data were released overnight.  According to Markit, the manufacturing purchasing managers index came in at 54.3 in December – which is a 21-month high.  Meanwhile, the Institute for Supply Management’s figures for the manufacturing PMI came in at 54.7 last month.  Either way, both results are positive and indicate industry expansion.

Markets

Wall Street finished higher: The Dow Jones Industrial Average rose 0.6 per cent to 19,882, the S&P 500 added almost 0.9 per cent to 2,258, and the NASDAQ was up almost 0.9 per cent at 5,429.

European markets closed mixed: London’s FTSE rose 0.5 per cent to a new record high, Paris added almost 0.4%, while Frankfurt lost 0.1 per cent.

Asian markets closed mixed: the Nikkei has been closed since last Friday and last finished 0.2% lower. The Hang Seng rose 0.7 per cent, while the Shanghai Composite was up 1% (boosted by strong manufacturing data released in China yesterday).

The Australian share market surged yesterday on the first trading day of 2017. Yesterday, the S&P/ASX 200 Index gained 67 points to finish at 5,733. On the futures market the SPI is up 2 points.

Currencies

The Australian Dollar at 8:45AM was buying $US72.22 cents, 59.01 Pence Sterling, 84.98 Yen and 69.41 Euro cents.

Ex-dividends
One company is going ex-dividend today: Thorn Group (ASX:TGA) will pay 5.5 cents, fully franked.

Commodities

Gold has risen $7.40 at $US1,159 an ounce for the February contract on Comex.
Silver has gained $0.35 to $16.34 for March.
Copper is flat at $2.49 a pound for March.
Oil has fallen $1.24 to $US52.48 a barrel for January light crude in New York.