The SPI is pointing to a positive start to the week, after US stocks advanced to their second consecutive week of gains. Sentiment rose on Wall St on the back of upbeat consumer confidence data, and news that Egypt’s president has stepped down easing fears over the political unrest in the country.
In US economic news: The Thomson Reuters/University of Michigan's preliminary consumer sentiment index lifted to 75.1 in February, up from 74.2 the month before. The latest read came in higher than had been expected and represents the strongest level in eight months.
On Friday, the Dow Jones Industrial Average, closed 44 points higher to 12,273, S&P500 gained 7 points to close 1,329 and the NASDAQ added 19 points to close 2,809.
European stocks werehigher: London’s FTSE up 43 points, Paris up 6 and Frankfurt up 31.
To Asian markets and stocks were also higher: Hong Kong’s Hang Seng was up 120, Tokyo Nikkei was closed and China’s Shanghai Composite was up 9 points.
The Australian share market finished weaker on Friday. The S&P/ASX 200 Index dropped 34 points to close at 4,881 and on the futures market the SPI is up 39 points.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US1.0018 cents, 62.61 Pence Sterling, 83.61 Yen and 74.11 Euro cents.
Economic news: Due out is the Australian Bureau of Statistics housing finance data for December 2010.
Company news:On Friday shares in BHP Billiton Ltd
(ASX:BHP) lost 0.81 per cent to close at $46.38. BHP is being tipped to report Australia’s largest ever first half profit on Wednesday, and all eyes will be on how much it decides to return to shareholders. Some analysts expect the global miner could record half year earnings of over $15 billion, positioning the company to deliver pre-tax profits of $30 billion for fiscal 2011. The expectations follow rival miner Rio Tinto Ltd
(ASX:RIO) last week posting a record full year profit of $14 billion, and, announcing it will return $5 billion to shareholders. In the 2010 financial year BHP reported a net profit of $15.3 billion.
At the end of last week shares in National Australia Bank Ltd
(ASX:NAB) fell 0.96 per cent to close at $25.69. The mortgage war between Australia’s biggest banks is heating up with National Australia Bank announcing it will pay the mortgage exit fees of two of its rivals. In a bid to lure more customers. NAB has pledged to reimburse homeowners the $700 to $900 payment charged by Commonwealth Bank of Australia
(ASX:CBA) and Westpac Banking Corporation
(ASX:WBC) to switch lenders. A NAB spokesperson has denied that the move could cost NAB tens of millions of dollars, claiming it is a sound commercial decisiongeared for boosting growth. In the 2010 financial year NAB booked a net profit of $4.2 billion.
To ex-dividends: Four companies are going ex-dividend today and they are Alesco Corporation with a $0.02 cent fully franked dividend, Bradken with a $0.18 cent fully franked dividend, Commonwealth Bank of Australia with a fully franked dividend of $1.32 and, Reckon with a 0.04 cent with a 90% franked dividend. Coming up tomorrow is Argo Investments, Alumina and Computershare.
To commodities: Gold is down $2.10 to $US1,360 an ounce for the April contract on Comex, silver is down $0.10 to $30.00 for March and copper is steady $4.54 a pound. Oil is down $1.15 at $85.58 a barrel for March light crude in New York.
