We’re expecting a little spike at the open for the Australian market today according to SPI futures, despite a flat close and mixed off shore leads.
US economic news: Claims for jobless benefits surged last week by the largest weekly increase since September 2005. Initial claims jumped 51,000 to 454,000.
On Thursday, the Dow Jones Industrial Average, closed 4 points higher to 11,990, S&P500 rose 3 points to close 1,300 and the NASDAQ added 16 points to close 2,755.
European stocks were mixed: London’s FTSE down 4 points, Paris up 11 and Frankfurt up 28.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 64 points, Tokyo up 77 points and China’s Shanghai Composite up 40 points.
The Australian share market finished flat on Thursday. The S&P/ASX 200 Index fell 2 points to close at 4,806 and on the futures market the SPI is up 11 points. Turning to currencies and the Australian Dollar at 8:10AM was buying 99.3 US cents, 62.35 Pence Sterling, 82.3 Yen and 72.33 Euro cents.
Company news: On Thursday shares in Atlas Iron Ltd (ASX:AGO) added 1.25 per cent to close at $3.23. The miner says it will double its export rate by the end of 2012 and is generating its strongest ever cash flows. Spot prices are currently fetching more than $US150 per wet tonne. Atlas came in just shy of its 1.5 million tonne quarterly target because of the closure of Port Hedland late last year due to a cyclone. Atlas reported iron ore prices increased more than 50 per cent over the December quarter, and are expected to strengthen further. In the year to 30 June 2010, Atlas Iron posted a net loss of $40.85 million.
On Thursday shares in Rio Tinto Ltd (ASX:RIO) are up 0.62% at $86.04. The head of Rio Tinto’s Australian coal unit says coal prices are headed for large rises due to flooding in Queensland and New South Wales. Managing Director Bill Champion added that coking coal is only likely to be capped once they start to make the price of steel too expensive. Mr Champion said the effects of the Australian floods could be seen in spot pricing and had been made more severe by wet weather in South Africa, Indonesia and Colombia. Contract coking coal prices are currently at $US225 a tonne, but spot prices are tipped to go to record highs this week past $US400. For the year ended 30 June 2010, Rio Tinto reported a net profit of $7.4 billion.
To ex-dividends: Djerriwarrh Investments is going ex-dividend today with a $0.10 cent fully franked dividend.
To commodities: Gold is down $14.60 to $US1,318 an ounce for the February contract on Comex, silver is down $0.10 to $27.03 for March and copper is up $0.07 to $4.34 a pound. Oil is down $1.69 at $85.64 a barrel for March light crude in New York.
