The Australian share market looks set to rise this morning following strong offshore leads. Wall St gained on strong earnings results as investors overcame continuing concerns over unrest in Egypt. While closer to home Cyclone Yasi is gaining momentum in Queensland. And, as concerns mount over how this will affect metal production in the state, the price of copper has climbed to a record high.
US economic news: The Commerce Department reported that construction spending dropped 2.5 per cent in December, after a lift of 0.4 per cent in November. The December drop was higher than economists had expected and represents the lowest level in a decade.
On Tuesday, the Dow Jones Industrial Average, closed 148 points stronger to 12,040, S&P500 lifted 21 points to close 1,308 and the NASDAQ rose 51 points to close 2,751.
European stocks were higher: London’s FTSE up 95 points, Paris up 67 and Frankfurt up 107.
To Asian markets, stocks were also higher: Hong Kong’s Hang Seng was up 36 points, Tokyo was up 37 points and China’s Shanghai Composite up 8 points.
The Australian share market finished lower on Tuesday. The S&P/ASX 200 Index eased 2 points to close at 4,752 and on the futures market the SPI is up 42 points. Turning to currencies and the Australian Dollar at 8:45AM was buying $US1.0125, 62.73 Pence Sterling, 82.37 Yen and 73.23 Euro cents.
Economic news: Due out today, the Housing Industry Association new homes sales for December. On Tuesday shares in BHP Billiton Ltd (ASX:BHP) lifted 0.84 per cent to close at $44.62. The Australian Electoral Commission has released figures that show BHP spent the most amount of money from the mining companies in political advertising and contributions before the last election. Following the announcement of the federal government’s new mining tax in May 2010, BHP poured over $4 million to sink the proposed tax, while Rio Tinto Ltd (ASX:RIO) spent just over $537,000. In total mining companies injected more than $20 million in donations in the lead up to the election, representing around triple the amount as unions. In the 2010 financial year, BHP booked a net profit of $15.3 billion.
Yesterday shares in Maryborough Sugar Factory Ltd (ASX:MSF) fell 5.67 per cent to close at $3.16. Maryborough Sugar Factory has told The Australian Financial Review that it has evacuated 300 staff in its Queensland operations as it prepares for Cyclone Yasi. The company has four mills threatened with the cyclone, in an area that produced one-third of the country’s sugar cane, in addition to a range of other commodities. Maryborough CEO Mike Barry has told the AFR he expects some level of damage as a result of the weather conditions. In the 2010 financial year Maryborough Sugar Factory reported a net profit of $7 million.
To commodities: Gold is up $5.80 to $US1,340 an ounce for the April contract on Comex, silver is up $0.35 to $28.51 for March and copper is up $0.09 to $4.55 a pound. Oil is down $1.42 at $90.77 a barrel for March light crude in New York.
