The Australian share- market is expected to open flat with Wall Street edging into the red as investors there remained cautious despite more takeover news and a positive report on the US services sector – both of which fuelled earlier gains.
Also affecting investor sentiment was an announcement from Greece about the steps it will take to cut its deficit.
In the latest economic news, the Institute for Supply Management said its services index for February rose to 53 from 50.5 in January. Growth in services industries is seen as crucial for an economic rebound.
On the jobs front, Payroll services firm ADP said employers in the private sector cut 20,000 jobs from their payrolls in February.
To the figures – the Dow Jones Industrial Average fell 9 points to 10,397 points. The S&P500 Index closed flat at 1,119 and the NASDAQ was also flat at 2,281.
European stocks gained. London’s FTSE rose 49 points, Paris is up 31 and Frankfurt added 41.
Asian stocks closed mixed with Hong Kong’s Hang Seng fell 29 points, Tokyo’s Nikkei rose 31 and China’s Shanghai Composite gained 24 points.
The Australian share market closed higher yesterday, boosted by gains in resources and materials stocks and strong economic data.
The S&P/ASX 200 Index added 34 points to 4,736 and on the futures market the SPI200’s is up 8 points. On to currencies: the Aussie Dollar at 8:40AM was buying 90.55 US cents, 59.97 Pence Sterling, 80.09 Yen and 66.12 Euro cents.
In local economic news, the Australian Bureau of Statistics releases data on international trade in goods and services for February.
To company news around this morning:
National Australia Bank (ASX:NAB) shares closed higher yesterday, adding 2.34% to $26.20. National Australian Bank and superannuation fund Industry Funds Management are reportedly working on a proposal to allow super funds to fund infrastructure projects. The Australian Financial Review newspaper reports that the NAB is in talks with 25 super funds and their fund managers about how to structure infrastructure loans in order to make them suitable for the super sector. Meanwhile, Industry Funds Management has established a specialist infrastructure debt fund to invest in infrastructure. The federal government is focused on developing more infrastructure with at least $450 billion worth of projects expected to be built over the next decade.NAB's global head of debt markets Steve Lambert told the paper that Australian infrastructure was a logical place for funds to invest. National Australia Bank’s 2009 net profit was just over $2.5 billion.
Cochlear (ASX:COH) shares closed relatively flat yesterday at $65.10. Cochlear is said to be still in the takeover race for the world’s largest hearing aid companies. The Australian Financial Review reports that Cochlear is in talks with Palladio Partners about an offer for the hearing-aid unit of Siemens AG. AFR says Cochlear might be part of a group with Kohlberg Kravis Roberts & Co. and Hellman & Friedman LLC to make a joint bid, worth $3.1 billion. However the parties are reportedly divided on price and there is speculation that Siemens, which is overhauling its IT services business, could be preparing to list the hearing aid division if a suitable offer isn’t made. Cochlear's chief executive Chris Roberts has played down expanding into hearing aids, he has indicated a willingness to acquire technology and know-how to secure the growth of its core implant business. Cochlear’s 2009 net profit result was $130 million.
Taking a look at ex-dividends: AGL Energy with a 29 cent fully franked dividend and Blackmores with a 42 cent fully franked dividend. Reverse Corp with a 1 cent fully franked dividend and Vision Group with a 2.5 cent fully franked dividend.
To commodities: Gold advanced $6.60 overnight to US$1,144 an ounce for the April contract on Comex. For the May contract Silver rose 25 cents to US$17.31 and copper rose 2 cents at US$3.43.
And oil gained $1.27 to US$80.95 a barrel for April light crude in New York.
