The Australian share market is poised to open with modest gains as it receives mixed to positive leads from offshore trading overnight. Wall Street indices are higher, as were European markets. However, commodities are lower. The European shares were mixed as EU leaders gathered in Brussels for a summit aimed at creating a permanent financial rescue fund for debt-laden euro-zone nations. Recent upbeat economic data coming out of the US saw stocks performing well.
US economic news: According to a Commerce Department Report, the number of new private home starts in the US has risen in November to 555,000. That was 3.9 per cent above revised October figures and higher than market forecasts. The Labor Department says the number of people filing for initial unemployment benefits has dropped by 3,000 to 420,000 in the latest week. That is the third drop in four week and although it is in line with what most economists predict, it signals the US economy is slowly regaining its footing.
On Thursday, the Dow Jones Industrial Average, closed 42 points higher to 11,499. S&P500 is up 8 points to close at 1,243 and the NASDAQ gained 20 points to 2,637.
European stocks were mixed: London’s FTSE is down 1 point, Paris is up 8 and Frankfurt is up 8.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 307, Tokyo’s Nikkei up 2 points and China’s Shanghai Composite down 13 points.
The Australian share market finished higher on Thursday. The S&P/ASX 200 Index closed 16 points higher at 4,784 and on the futures market the SPI was up 11 points. Turning to currencies and the Aussie Dollar at 8:25AM was buying 98.96 US cents, 63.31 Pence Sterling, 83.18 Yen and 74.78 Euro cents.
Company news: Yesterday, shares in Brockman Resources Ltd (ASX:BRM) closed 0.41 per cent higher at $4.92. Junior iron-ore miner Brockman Resources has announced it is in advanced talks with Fortescue Metals Group Ltd (ASX:FMG) on rail access, coming one step closer to an infrastructure solution for its $1.3 billion iron ore project. Brockman says it is working towards a solution for end-to-end rail haulage, port access and marketing service for its Marillana iron ore project based in Western Australia’s Pilbara region. For the year ended 30 June 2010, Brockman reported a net loss of $24.2 million.
On Thursday shares in National Australia Bank Ltd (ASX:NAB) closed 0.04 per cent lower at $24.44.National Australia Bank’s chairman Michael Chaney has taken a swipe at criticism directed towards the banking industry on mortgage rates, calling it ‘unjustified and unfair.’ Mr Chaney lashed out at what he called ‘bank bashing’ and says people that argue there has been a collapse in competition following the global financial crisis are wrong. Mr Chaney’s remarks round off an outspoken week where the Big Four have been extremely vocal about threats of industry re-regulation or the Government’s efforts to create a fifth pillar. For the year ended 30 September 2010, NAB reported a net profit of $4.2 billion.
Ex-dividends: There are two companies going ex-dividend today and they are NetComm with a $0.05 fully franked dividend and Singapore Telecommunications with a $0.0521 unfranked dividend. And coming up on Monday is PaperlinX SPS Trust.
Commodities: Gold is down $15.20 to $US1,371 US an ounce for the February contract on Comex, silver is down $0.47 to $28.78 for March and copper is down $0.02 at $4.12 a pound. Oil is down $0.92 at $87.70 for January light crude in New York.
