The Australian share market looks in for a flat start today, after Wall St closed only slightly higher. Though financial stocks weighed on the market, US investors welcomed President Obama's speech outlining plans to cut the nation’s budget deficit by $4 trillion over 12 years.
US economic news: The Commerce Department reported that retail sales lifted just 0.4 per cent in March. The figure was lower than expected and represents the smallest gain in nine months. A separate government report also came in lower than had been expected. Business inventories, a key component of GDP, added 0.5 per cent in February.
To the figures: On Wednesday, the Dow Jones Industrial Average closed 7 points higher at 12,271, the S&P500 closed steady at 1,314 and the NASDAQ rose 17 points to close at 2,762.
European stocks closed higher: London’s FTSE up 46 points, Paris up 30 and Frankfurt was up 75.
To Asian markets and stocks were also higher: Hong Kong’s Hang Seng was up 159, Tokyo Nikkei was up 86 and China’s Shanghai Composite was up 29.
The Australian share market edged a little higher on Wednesday: The S&P/ASX 200 Index rose 12 points to close at 4,911. On the futures market the SPI is currently 9 points lower.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0499 US cents, 64.55 Pence Sterling, 88.11 Yen and 72.71 Euro cents.
Economic news: Due out today is the Australian Bureau of Statistics sales of new motor vehicles for March.
Company news: On Wednesday shares in Commonwealth Bank of Australia (ASX:CBA) added 0.67 per cent to close at $52.89. CBA looks set to benefit from its stake in Air Lease Corporation, as the US-based company prepares to raise up to $US805 million through an initial public offering on Wall St. According to Fairfax the bank made an initial $US125 million investment into the venture last year and already looks to gain a potential $US50 million. CBA is one of Air Lease’s largest shareholders, holding just under 10 per cent of the aircraft leasing company. In the first six months of the 2011 financial year, CBA booked a net profit of $3 billion.
Yesterday shares in National Australia Bank Ltd (ASX:NAB) gained 0.69 per cent to close at $26.44. NAB is reportedly in talks with potential partners for a joint bid for branches of Britain’s largest bank, Lloyds, that are up for sale. According to Reuters if the bank successfully secures the bid with a partner it will spin off its existing UK assets into a joint venture and wait for market conditions to improve before selling down its stake. NAB has 12 per cent of its assets in the UK, though their contribution to NAB’s profits last year was under 5 per cent. In the 2010 financial year NAB booked a net profit of $4.2 billion.
Ex-dividends: No companies are going ex-dividend today. Cpming up tomorrow are CTI Logistics, FFI Holdings, and Washington H. Soul Pattinson and Co.
Commodities: Gold is up $2.00 to $US1,455 an ounce for the June contract on Comex, silver is up $0.17 to $40.24 for May and copper is down $0.09 at $4.29 a pound. Oil is up $0.86 at $107.11 a barrel for May light crude in New York.
