The Australian share market looks to be in for a higher start to the day. On Tuesday US stocks snapped a losing streak to close in the black as Wall St welcomed the reporting season with stronger-than-expected fourth quarter reports and outlook statements. Aussie shares are receiving generally positive leads, boosted by Japan's pledge to buy eurozone bonds, easing concerns over Europe’s debt. While Australia wide investors will certainly be assessing the unfolding impact of Queensland’s flooding crisis.
US economic news: The Commerce Department reported wholesale inventories lost 0.2 per cent in November. The figure surprising economists, who had largely expected a rise of around 1 per cent in November, after lifting 1.7 per cent the month before.
On Tuesday, the Dow Jones Industrial Average, closed 34 points stronger to 11,672. S&P500 added 5 points to close 1,274 and the NASDAQ firmed 9 points to close 2,717.
European stocks were higher: London’s FTSE up 58 points, Paris up 60 and Frankfurt up 85.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng up 233 points, Tokyo down 30 and China’s Shanghai Composite up 12 points.
The Australian share market finished flat on Tuesday. The S&P/ASX 200 Index lost 2 points to close at 4,711 and on the futures market the SPI is up 10 points. Turning to currencies and the Aussie Dollar at 8:35AM was buying 98.74 US cents, 63.23 Pence Sterling, 82.16 Yen and 76.08 Euro cents.
Local economic news: Expected out today, the Australian Bureau of Statistics housing finance data and job vacancies data, both for November 2010.
Company news: On Tuesday Shares in Westfield Group (ASX:WDC) closed 0.93 per cent lower at $9.60. Investment bank Merrill Lynch has upgraded Westfield Group to a “buy”, underpinned by the improving outlook for US retail and the likelihood Westfield will sell down its American shopping centre interests. The Australian reports that Merrill Lynch considers Westfield Group a compelling buy considering above average asset quality, and has boosted its price objective on the stock to $10.37. Westfield Group generated a net profit of $965.8 million in fiscal 2010.
Yesterday shares in Sedgman Ltd (ASX:SDM) fell 2.44 per cent to close at $2.00. Sedgman says it has scored $US31 million of contracts in Mongolia, including the company’s first international operations management contract. The resource sector services provider says the contracts are for work on Energy Resources’ UHG coal mine and represent Sedgman’s early entry into an emerging coal region that is forecast to grow rapidly to meet the coal demands of China’s major steel makers. Sedgman boosted its profit to $24.99 million in the 2010 financial year.
To ex-dividends: The only company going ex-dividend today is CSR with a 9.13 cent fully franked dividend. Coming up on Friday are Abacus Property Group and Viterra.
To commodities: Gold is up $10.20 to $US1,384 an ounce for the February contract on Comex, silver is up $0.64 to $29.50 for March and copper is up $0.08 to $4.35 a pound. Oil is up $1.86 at $91.11 a barrel for February light crude in New York.
