The SPI is pointing to a steady start for Aussie shares, following Wall St closing mixed. US stocks pulled back after some disappointing earnings reports in the technology sector, but firmed before close after Egypt’s President signaled he may step down, easing concern over ongoing unrest in the country.
In US economic news: The Labor Department report showed the number of Americans who last week filled first-time claims for unemployment benefits dropped to 383,000, the smallest number in over two years and coming in much better than had been expected.
On Thursday, the Dow Jones Industrial Average, closed 11 points lower to 12,229, S&P500 closed up almost 1 point to 1,322 and the NASDAQ added 1 point to close 2,790.
European stocks were mixed: London’s FTSE down 32 points, Paris firmed 4 points and Frankfurt was up 19 points.
To Asian markets and stocks were also mixed, Hong Kong’s Hang Seng was down 455, Tokyo’s Nikkei was down 12 and China’s Shanghai Composite was up 44 points. The Australian share market finished higher on Thursday. The S&P/ASX 200 Index lifted 10 points to close at 4,914. Turning to currencies and the Australian Dollar at 8:40AM was buying $US1.049, 62.44 Pence Sterling, 83.64 Yen and 73.9 Euro cents.
Economic news: The Reserve Bank of Australia’s governor Glenn Stevens is due to appear before the House of Representatives Standing Committee on Economics.
Company news: Yesterday shares in Wesfarmers Ltd (ASX:WES) firmed 1.22 per cent to close at $33.91. Dairy farmers have lashed out at Wesfarmers owned Coles after the supermarket chain slashed the price of its home-brand milk to $1 a litre, in a move that has been matched by rival Woolworths (ASX:WOW). A Senate committee will now look into the so called ‘dairy war’, while calls have come for Australia’s competition watchdog to launch a formal investigation. The Australian Dairyfarmers Federation says Wesfarmers should stop the price cuts and explain how its pricing strategy is consistent with the origins and values of the company. A Coles spokesperson has said that the supermarket will be funding the price cuts. Wesfarmers booked a net profit of $1.6 billion in the year to 30 June 2010.
On Thursday shares in Telstra Corporation Ltd (ASX:TLS) eased 0.35 per cent to close at $2.88. Analysts have tipped Telstra could gain up to $100 million every year by charging by the minute, rather than in 30-second blocks. CEO David Thodey yesterday defended the telco’s plan to lift the cost of mobile, international or STD phone calls from 40c for 30 seconds to a minimum 80c per minute, claiming the change would be “modest”. Mr Thody says the 30-second change is coming in line with the industry and 95 per cent of customers will not be impacted. Yesterday Telstra posted a 36 per cent fall in its first half profit, falling to $1.21 billion in the six months to 31 December.
To ex-dividends: No companies are going ex-dividend today. Coming up on Monday is Alesco Corporation with a $0.02 cent fully franked dividend.
To commodities: Gold is down $3.00 to $US1,362 an ounce for the April contract on Comex, silver is down $0.18 to $30.09 for March and copper is up $0.02 at $4.54 a pound. Oil is up $0.02 at $86.73 a barrel for March light crude in New York.
