The Australian share market will open flat today despite mostly positive leads from US markets.
It’s still corporate earnings season on Wall Street, with the Dow Jones and Nasdaq hitting new record highs this morning. However, the S&P 500 just managed to break even. The worst performing sector by far was Energy, which dropped 1.3% due to a fall in oil prices overnight.
Investors are still waiting to hear what the details of the Trump administration’s policies are. Optimism remains high about the prospects of corporate tax cuts, the financial sector being deregulated, and higher spending on infrastructure.
US economic newsThe Commerce Department released a report stating that the US trade deficit narrowed slightly in December – falling 3.2% to $44.2 billion. For the whole year, the deficit was up 0.4 percent to $502.3 billion – which is the highest annual imbalance since 2012.
The Commerce Department also released its Job Openings and Labor Turnover Survey for December – showing that US job openings were little changed and totalled 5.5 million.
MarketsWall Street finished mixed this morning: The Dow Jones added 0.2 per cent to 20,090, the S&P 500 was flat at 2,293 and the NASDAQ was up 0.2 per cent to 5,674.
European markets also finished: London’s FTSE gained 0.2 per cent, Paris fell 0.5 per cent and Frankfurt lifted 0.3 per cent.
Asian markets were mixed: Tokyo’s Nikkei fell almost 0.4 per cent, while Hong Kong’s Hang Seng and China’s Shanghai Composite both fell around 0.1 per cent.
The Australian share market finished higher yesterday: The S&P/ASX 200 Index was up 6 points to finish at 5,622. On the futures market the SPI is 3 points higher.
Company newsThe Foreign Investment Review Board has given notice to the Cover-More Group Ltd
(ASX:CVO) that it does not object to the insurance company being acquired by Zurich Travel Solutions Pty Ltd via a scheme of arrangement. The Board’s approval is a key condition to the implementation of the scheme and shareholders should receive the draft Scheme Booklet by 24 February. Shares in Cover-More last traded steady at $1.92.
Ex-dividendsResMed
(ASX:RMD) will pay an unfranked dividend of 3.05 cents.
CurrenciesThe Australian Dollar at 8:30AM was buying $US0.7633, 61.02 Pence Sterling, 85.73 Yen and 71.44 Euro cents.
CommoditiesGold has gained $3.50 to $US1,236 an ounce.
Silver has risen 2 cents to $17.71 an ounce.
Oil has fallen $0.91 to $US52.27 a barrel.
