The Australian share market looks set for a slightly higher start to the week, Wall St lifting on upbeat economic news, with the S&P500 closing at a two-year high. Both the Dow and S&P500 now look to end the year 10 per cent stronger, while the Nasdaq is 16 per cent stronger year to date. In China, data showed consumer prices rose 5.1 per cent, at a 28-month high.
In US economic news: The Commerce Department showed the US trade balance, the difference between the country's imports and exports, unexpectedly narrowed 13 per cent to $38.7 billion in October. Exports rose to the strongest level since August 2008, up 3.2 per cent to $158.7 billion. While imports dropped 0.5 per cent to $197.4 billion. Also, The University of Michigan/Reuters index of consumer confidence produced a read better than expected, advancing to 74.2 for early December, from 71.6 the month before.
On Friday, the Dow Jones Industrial Average, closed 40 points higher to 11,410. S&P500 lifted 7 points to 1,240 and the NASDAQ gained 21 points to 2,638.
European stocks were mixed: London’s FTSE is up 5 points, Paris is flat and Frankfurt is up 42.
To Asian markets, stocks were also mixed: Hong Kong’s Hang Seng was down 9 points, Tokyo’s Nikkei down 74 points and China’s Shanghai Composite up 30 points.
The Australian share market finished slightly higher on Friday. The S&P/ASX 200 Index closed 5 points up at 4,746 and on the futures market the SPI is up 12 points. Turning to currencies and the Aussie Dollar at 7:50AM was buying 98.49 US cents, 62.29 Pence Sterling, 82.63 Yen and 74.5 Euro cents.
In economic news: Due out today The Reserve Bank of Australia credit and debit card data for October and also, the Australian Bureau of Statistics lending finance data for October.
Company news: On Friday shares in Commonwealth Bank of Australia (ASX:CBA) rose 0.7 per cent to close at $50.59. Investors will be looking towards the banks today, following Treasurer Wayne Swan detailing the long awaited banking competition reforms. First up, outlawing mortgage exit fees from 1 July 2011 and also on the list, giving the Australian Competition and Consumer Commission more power to tackle anti-competitive price signalling. However the reforms haven’t been all met with open arms, critics claim the profits Australia’s big banks are unlikely to suffer any major dents. Commonwealth Bank boosted its profit from $4.7 billion last year to $5.7 billion in the 2010 financial year.
Shares in BHP Billiton Ltd (ASX:BHP) closed steady at $45.44 on Friday. A WikiLeaks cable has exposed BHP’s efforts to sabotage Rio Tinto Ltd’s (ASX:RIO) proposed $21 billion deal with China-owned Chinaco. Wikileaks says a cable from the Australian government to the US government shows the extent to which BHP lobbied to torpedo Chinalco’s now failed bid to increase its stake in Rio. BHP has not as yet commented on the revelations. BHP Billiton lifted its net profit to $15.26 billion in fiscal 2010, up from $7.8 billion in 2009. To commodities: Gold is down $7.90 to $US1,384 an ounce for the February contract on Comex, silver is down $0.21 to $28.60 for March and copper is up $0.03 to $4.11 a pound. Oil is down $0.58 at $87.79 for February light crude in New York.
