Mixed leads from overseas markets point to a moderately higher start for the Australian market this morning.
Mixed economic news held back Wall Street. The US Labor Department said unemployment benefits fell by 6000 to 462,000 last week. Economists were predicting a slightly bigger drop.
Meanwhile, the Commerce Department said the country's trade deficit fell in January to $37.3 billion from a revised reading of $39.9 billion because of a big drop in imported oil and cars. The deficit was expected to widen to $41 billion.
Investors also remained concerned after China said its inflation rate rose to 2.7% in February from 1.5% in January. A steep rise in prices could force China to raise interest rates and potentially slow one of the world's fastest-growing economies.
To the figures now and the Dow Jones Industrial Average gained 45 points to 10,612. The S&P500 Index edged up 5 points at 1,150 and the NASDAQ rose 10 points to 2,368.
European stocks fell. London’s FTSE lost 23 points, Paris is down 15 and Frankfurt slipped 8 points.
Asian stocks were higher with Hong Kong’s Hang Seng gained 20 points, Tokyo’s Nikkei rose 101 and China’s Shanghai Composite added 2 points.
The Australian share market closed marginally lower yesterday. The S&P/ASX 200 Index closed 6 points lower to 4,814 and on the futures market the SPI200 is up 9 points. On to currencies: the Aussie Dollar at 8:40AM was buying 91.57 US cents, 60.81 Pence Sterling, 82.92 Yen and 66.96 Euro cents.
In local economic news: the Reserve Bank of Australia releases credit card data for January.
To company news around this morning: Shares in the Seven Network (ASX:SEV) closed 1% lower yesterday to $7.91. Seven Network Director Peter Gammell is confident that the media company's $2 billion purchase of WesTrac is gaining traction among minority shareholders. Speaking after a meeting in Perth yesterday, Mr Gammell said that shareholders in the WA capital understood WesTrac's Caterpillar franchise and were supportive of the merger. Mr Gammell, who will run the combined group if the deal wins approval, said the information memorandum has been lodged with ASIC and will be sent to shareholders in coming days. Mr Gammell is conducting a national tour to try and win support for the deal. Key minority shareholders Ausbil Dexia and Perennial Investment Partners have so far declined to say publically whether they will accept the deal. The Seven Network posted just under a $12.5 million net profit in 2009.
Rio Tinto (ASX:RIO) Shares gained 0.27% yesterday to $75.55. Rio Tinto is in talks to sell its talc business and would like to close the deal over the next year or so. Rio's diamonds and minerals division head Harry Kenyon-Slaney said a number of parties are interested in the sale. The miner operates talc mines and processing facilities in several countries, including Australia. Talc is used in animal feed, ceramic tiles, chewing gum and many everyday products including body powder. When discussing the reason for the sale, Mr Kenyon described talc as a strong business but one that no longer fits with Rio's portfolio of large and low cost assets. Rio Tinto’s net profit for 2009 was just over $5.4 billion.
There are a number of companies going ex-dividend today including, Breville Group, 6 cent unfranked, Brambles 12.5 cent 20% franked. And Nuplex Industries 6.72 cent 80% franked and Oakton 2.5 cent fully franked.
To commodities: Gold is steady at US$1,108.10 an ounce for the April contract on Comex. For the May contract silver rose 15 cents to US$17.17 and copper is added 1 cent at US$3.38.
And finally the price of managed to above US$82 and added 22 cents to US$82.31 a barrel for April light crude in New York.
