The Australian share market looks to be in for a flat start, receiving mixed overseas leads. Wall St made gains throughout the day on positive retail sales data but retreated at close, investors reserved ahead of economic data due out this week and lingering sovereign debt concerns in Europe.
In US economic news: The Commerce Department showed consumer spending came in at almost double the expected rise, increasing 1.2 per cent in October and representing the biggest gain in seven months, boosted by motor vehicle sales. However, the Federal Reserve Bank of New York reported its Empire State manufacturing survey index of general business conditions fell 27 points to -11.1 in November, representing the lowest level since April 2009.
On Monday, the Dow Jones Industrial Average closed 9 points up at 11,202. The S&P 500 Index closed 1 point weaker at 1,198 and the NASDAQ closed 4 points lower at 2,514.
European stocks were higher: London’s FTSE up 24 points, Paris is up 33 and Frankfurt up 56.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 195 points, Tokyo’s Nikkei was up 103 points and China’s Shanghai Composite up 29.
The Australian share market finished lower on Monday. The S&P/ASX 200 Index closed 5 lower to 4,688 and on the futures market the SPI200 is down 3 points. Turning to currencies and the Aussie Dollar at 8:55AM was buying 98.54 US cents, 61.4 Pence Sterling, 81.89 Yen and 72.55 Euro cents.
In local economic news: Due out today the Reserve Bank of Australia’s minutes of its November 2 monetary policy meeting, Melbourne Institute wages report for the three months to November, the KPMG analysis of financial results of credit unions and building societies and the Australian Chamber of Commerce and Industry small business survey.
Company news: Shares in OneSteel Ltd (ASX:OST) closed flat at $2.74 on Monday. OneSteel says its first half net profit is likely to remain steady at around $117 million, due to a delay in recovery and a strong Australian dollar. The guidance came just after OneSteel announcing it would spend $US932 million to acquire Anglo American plc’s Moly-Cop and AltaSteel businesses. While OneSteel shares rose on news of the acquisition, shares retreated to close flat following the subdued guidance revealed at the company’s annual general meeting. OneSteel boosted its earnings to $260.7 million in the 2010 financial year.
Infratil FPO (ASX:IFZ) last traded at $1.43. In the six months to 30 September, Infratil has booked net profit of $16 million, from a loss of $31 million the same time last year, and boosted its full year guidance. Infratil says that New Zealand’s emerging economic recovery and Australia’s sustained growth are positive for its business, while financial market uncertainty and change means attractive investment opportunities continue to become available. Because of the strong half year result Infratil has increased its full year guidance, now forecast to reach between $415 million to $435 million. The company has declared a dividend of 2.5 cents to be paid on 17 December. To ex-dividends: The two companies going ex-dividend today are Washington H. Soul Pattinson and Co. with a 32.5 cent fully franked dividend and Whitefield with a 8.5 cent fully franked dividend. Coming up tomorrow is Brickworks and Stratatel.
To commodities: and the price of gold is up $US3.00 to $US1368 an ounce for the December contract on Comex, silver is up $US0.15 to $26.09 and copper is up $0.03 at $3.92 a pound. The price of oil is down $0.02 to $US84.86 a barrel for December light crude in New York.
