Following a flat lead from Wall Street at the end of last week, the Australian share market may open slightly higher this morning. Higher commodity prices are likely to help lift local resource stocks today.
Wall Street closed flat on Friday, ending a big week which left investors optimistic, yet cautious, about the US Federal Reserve’s decision to boost the emergency bank lending rate.
In economic news out of the US, the Consumer Price Index rose 0.2% in January, slightly below market expectations of 0.3%.
The Dow Jones Industrial Average is up 9 points to 10,402 points. The S&P500 Index added 2 points to 1,109 and the NASDAQ gained 2 points to 2,244.
To other international markets, European stocks rose. London’s FTSE gained 33 points, Paris is up 22 and Frankfurt rose 42 points.
Asian stocks closed lower on Friday with Hong Kong’s Hang Seng down 528 points, Tokyo’s Nikkei fell 212 and China’s Shanghai Composite is closed for Chinese New Year.
The Australian share market closed lower on Friday. The S&P/ASX 200 Index fell 20 points to 4,635 and on the futures market the SPI200’s up 58 points.
On to currencies: the Aussie Dollar at 9:00AM was buying 90.17 US cents, 58.26 Pence Sterling, 82.49 Yen and 66.12 Euro cents.
In economic news out today: The Australian Bureau of Statistics is set to release new motor vehicle sales data for January, and the Housing Industry Association’s affordability report for the December quarter is due.
There are a number of Australian companies reporting today including Caltex Australia, Challenger Financial, Fairfax Media, iiNet, NIB and UGL, which are due to release their first-half results.
To company news around this morning: Shares in ANZ (ASX:ANZ) closed lower on Friday, slipping 0.41% to $21.96. The bank has reportedly signed a strategic cooperation agreement with the Chinese municipality in which it has opened a rural branch. The deal with Chongqing Government’s Financial Affairs Office formalises ANZ’s intention to set up the branch and help grow the municipality’s financial industry. ANZ expects to complete the approvals to establish a wholly owned bank subsidiary in China this year, which will pave the way for it to open 20 new branches in the country. ANZ posted a profit of $2.943 billion for the 12 months to September 30, 2009.
Foster’s Group (ASX:FGL) shares closed lower on Friday, down 2.65% to $5.50. CEO Ian Johnston says the company is selling wine assets to improve profits in its struggling wine division. The Sydney Morning Herald reports that Mr Johnston believes it will be tough to turn the division around because of the global grape glut damaging the industry as a whole. The selldown will include non-essential wine assets, vineyards and wineries. Australia’s biggest brewer will then concentrate on strengthening its core brands in each market to prepare for an economic recovery. On Tuesday, Foster’s posted a 13.5% drop in first half profit to $355.7 million. Foster’s reported a profit of just over $438 million for fiscal 2009.
Taking a look at ex-dividends: There are a number of companies going ex-dividend today. Among them are Coca Cola Amatil with a 25 cent fully franked dividend, Cochlear with a fully franked dividend of 95 cents, Mincor Resources with a 3 cent fully franked dividend and Telstra with a fully franked 14 cent dividend. Coming up tomorrow is Foster’s Group and on Wednesday is Rio Tinto.
To commodities: Gold is up $3.30 to US$1,122 an ounce for the April contract on Comex. For the March contract, silver rose 35 cents to US$16.41 and copper rose 7 cents at US$3.37.
And finally the price of oil is up $1.01 cents to US$79.81 a barrel for March light crude in New York.
