The Australian share market looks to be in for a positive start to the day. On Wednesday Wall St closed stronger, as better than expected private sector employment data improved the economic outlook and lifted investor optimism.
In US economic news: ADP Employer Services showed private sector payrolls rose by 297,000 in December, almost triple the amount estimated by economists. Challenger Gray & Christmas revealed that planned job cuts fell 59 per cent to 530,000 in 2010, representing the smallest amount in 13 years. Institute of Supply Management reported an increase in service sector activity, the index lifted to 57.1 in December, up from a read of 55 in November, with a read over 50 reflecting expansion.
On Wednesday, the Dow Jones Industrial Average, closed 32 points higher to 11,723. S&P500 gained 6 points to close 1,277 and the NASDAQ closed 21 points up to 2,702.
European stocks were mixed: London’s FTSE is up 30 points, Paris is down 11 and Frankfurt is down 36.
To Asian markets, stocks were also mixed: Hong Kong’s Hang Seng was up 89 points, Tokyo’s Nikkei down 17 and China’s Shanghai Composite down 14 points.
The Australian share market finished lower on Wednesday. The S&P/ASX 200 Index eased 28 points to close at 4,715 and on the futures market the SPI is up 19 points. Turning to currencies and the Aussie Dollar at 8:35AM was buying 99.97 US cents, 64.43 Pence Sterling, 83.22 Yen and 76 Euro cents.
Economic news: Expected out today, the Australian Bureau of Statistics building approvals data for November, the Australian Industry Group and the Commonwealth Bank Australian Performance of Services Index for December, and also, The Federal Chamber of Automotive Industries monthly car sales for December and full year figures for 2010.
Company news: On Wednesday shares in Foster's Group Ltd (ASX:FGL) closed steady at $5.65. Citigroup has cautioned that beverages company Foster's Group is facing a decline in beer profitability for the first time since 2001, according to The Australian. The paper reports that Citigroup has attributed a cool start to the Australian summer and a shift in consumer tastes toward pre-mixed drinks and spirits to curbing beer demand. In addition, Citigroup says gains in the Australian dollar are making imported brews more affordable than Foster's labels. Foster’s posted a net loss of $463.4 million in the year to 30 June 2010.
Shares in Australian Agricultural Company Ltd (ASX:AAC) last traded at $1.46. Australian Agricultural Company has warned that it expects to incur a loss of up to $9.2 million in the 2010 calendar year, because of the impact of Queensland’s floods. Infrastructure losses are expected to reach between $4.5 million to $5.5 million, while crop losses will lower revenue forecasts by an additional $3 million to $3.7 million. The beef cattle company says it will share more information as the flood waters recede over the coming weeks and a more accurate assessment can be made. Australian Agricultural Company booked a net loss of $12.2 million in the half year ended 30 June 2010.
To commodities: Gold is down $5.10 to $US1,373 an ounce for the February contract on Comex, silver is down $0.31 to $29.20 for March and copper is up $0.04 to $4.41 a pound.Oil is up $0.92 at $90.30 a barrel for February light crude in New York.
