The Australian share market looks set to open higher, with positive offshore leads buoyed by news that China will not hike its interest rate. US investors also embraced the news, Wall St closing with slight gains on Monday as investors await the Senate’s verdict on President Obama’s proposed tax deal.
On Monday, the Dow Jones Industrial Average, closed 18 points higher to 11,429. S&P500 was flat at 1,240 and the NASDAQ eased 13 points to 2,625.
European stocks were higher: London’s FTSE is up 48 points, Paris is up 35 and Frankfurt is up 23.
To Asian markets, stocks were also higher: Hong Kong’s Hang Seng was up 155 points, Tokyo’s Nikkei up 82 points and China’s Shanghai Composite up 82 points.
The Australian share market finished modestly higher on Monday. The S&P/ASX 200 Index closed 11 points up at 4,757 and on the futures market the SPI is up 11 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying 99.53 US cents, 62.79 Pence Sterling, 83.09 Yen and 74.35 Euro cents.
In economic news: Due out today the Australian Bureau of Statistics dwelling unit commencements for the September quarter, and also National Australia Bank’s monthly business survey for November.
Company news: Shares in Origin Energy Ltd (ASX:ORG) lifted 1.14 per cent to close at $16.80 on Monday. Origin and TRUenergy are moving in on securing the New South Wales state government’s power assets, with media reports signalling that due diligence is now in its final stages. The Australian says the New South Wales $6 billion power privatisation plan will spark a major sharemarket float and separate rights issue, if both electricity retailers are successful in purchasing the assets. Last week Australia’s competition regulator announced it would not block Origin or AGL Energy Ltd’s (ASX:AGK) proposed acquisitions, removing the last hurdle to privatisation. Origin Energy generated a net profit of $680 million in the 2010 financial year.
On Monday shares in Rio Tinto Ltd (ASX:RIO) firmed 0.47 per cent to close at $87.77. Rio Tinto is reportedly eyeing off partnering with an Indian company to develop iron ore mines in the country. An official from the global miner’s Indian arm has told the media that Rio is keen to have iron ore operations in India as the country can effectively ramp up the production of the mineral to satisfy a growing global appetite. Rio Tinto recorded a net profit of $7.36 billion in the 2010 financial year.
Ex-dividends. No companies are going ex-dividend today. Coming up tomorrow is The MAC Services with a 5 cent fully franked dividend, and on Friday, NetComm and Singapore Telecommunications.
To commodities: Gold is up $13.10 to $US1,398 an ounce for the February contract on Comex, silver is up $1.02 to $29.62 for March and copper is up $0.10 to $4.21 a pound. Oil is up $0.82 at $88.61 for February light crude in New York.
