The Australian sharemarket is set to open stronger, with strong leads from Wall Street. Investors shook off the fear that’s driven them to sell, sell, sell over the past fortnight, and the bargain hunters came out in force, pushing up US stocks by four per cent.
US economic news
Jobless claims fell by 7,000 to a seasonally adjusted 395,000, their lowest levels in four months.
And the US trade gap unexpectedly widened in June to its highest level since October 2008. The June trade deficit jumped to $US53 billion.
European economic news
The French President and German Chancellor will meet next week to discuss financial governance.
The figures
On Thursday, the Dow Jones Industrial Average was up 423 points to close at 11,143, the S&P500 gained 52 points to close at 1,173 and the NASDAQ rose 112 points to close at 2,493.
European stocks were higher: London’s FTSE up 156 points, Paris gained 87, and Frankfurt rose 184 points.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng down 189, Tokyo’s Nikkei fell 57 points and China’s Shanghai Composite gained 32.
The Australian share market closed flat on Thursday: The S&P/ASX 200 Index finished the day at 4,141. On the futures market the SPI is 72 points higher.
Currencies
The Australian Dollar at 7:45AM was buying $1.0345 US cents, 63.7 Pence Sterling, 79.52 Yen and 72.65 Euro cents.
Company news
Yesterday shares in News Corporation (ASX:NWS) ended the day up 3.8 per cent at $14.75. Rupert Murdoch has announced his top lieutenant Chase Carey will be his replacement should anything happen to him. The announcement is being taken as a sign that his son James may be sidelined in response to the News of the World phone hacking scandal. Media experts had wondered who would be next in line to replace the eighty-year old, many had thought it would be a member of his family.
On Thursday shares in BlueScope Steel Limited (ASX:BSL) ended the day down 1.51 per cent at $0.98. Australia’s largest steelmaker has flagged it will cut half its production at Port Kembla, halt exports and writedown $900 million of its asset values. It follows a review of its Australian steelmaking production capacity. BlueScope says further writedowns and production cuts may be necessary. The move is in response to increasing material costs, low prices and the high Australian dollar. BlueScope Steel booked a net loss of $49.2 million in the six months to December 31, 2010.
Ex-dividends
There are four companies going ex-divided today, they are the Australian Foundation Investment Company with a with a $0.13 fully franked dividend, Alesco Corporation Limited with a $0.12 fully franked dividend, Coca-Cola Amatil Limited with a $0.22 fully franked dividend and K2 Asset Management Holdings Limited with a with a $0.01, 80 per cent franked dividend.
Commodities
Gold is down $32.80 to $US1,751 an ounce for the December contract on Comex, silver has fallen $0.66 to $38.67 for September and copper is up $0.12 at $4.01 a pound. Oil has risen $2.83 to $85.72 a barrel for September light crude in New York.
