The Australian share market looks poised for a positive start after global markets started the week higher. Investors welcomed news Germany’s Chancellor and France’s President have struck a debt deal but remained cautious after a Standard & Poor’s report warned eurozone members face the threat of potential ratings downgrades. At home eyes will be on the Reserve Bank of Australia’s interest rate decision this afternoon.
US economic news
The Commerce Department has reported factory orders declined broadly in line with expectations, down 0.4 per cent in October after easing 0.1 per cent the month before.
The Institute for Supply Management’s non-manufacturing purchasing managers' index dropped to 52 in November, from 52.9 the month before. Though a figure more than 50 indicates expanding activity it was the lowest read in almost two years and defied expectations for a rise.
Figures
Wall Street pared gains after the S&P warning but still finished higher: The Dow Jones Industrial Average rose 78 points to close at 12,098, the S&P500 added 13 points to close at 1,257 and the Nasdaq firmed 29 points to close at 2,656.
European stocks also lifted on Monday: London’s FTSE was up 16 points, Paris was up 36 points and Frankfurt was up 25 points.
To Asian markets, stocks finished mixed: Hong Kong’s Hang Seng was up 139 points, Tokyo Nikkei was up 52 and China’s Shanghai Composite was down 27 points.
Yesterday the Australian share market firmed throughout the day to end 0.8 per cent stronger. The S&P/ASX 200 Index gained 33 points to finish at 4,321. On the futures market the SPI is now 14 points higher.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0271 cents, 65.64 Pence Sterling, 79.9 Yen and 76.65 Euro cents.
Economic news
Due out today from the Reserve Bank of Australia: December interest rate decision. From the Australian Bureau of Statistics: balance of payments and international investment position data for the September quarter.
Company news
Shares in MAp Group (ASX:MAP) lifted to a three year high yesterday, gaining 1.43 per cent to close at $3.55. MAp, the 85 per cent owner of Sydney Airport, has outlined plans for a major overhaul to improve the airport’s efficiency. MAp plans to separate terminals by a passenger’s airline, rather than destination, and merge international and domestic terminals. Shares in Qantas Airways Limited (ASX:QAN) advanced 2.5 per cent on news of the plan. CEO Alan Joyce has welcomed the proposal that could see Qantas receive more that $350 million after surrendering its long-term leases. In the first half of its 2011 financial year MAp Group reported a net loss of $296 million.
Shares in Virgin Blue Holdings Limited (ASX:VBA) closed steady on Monday at $0.355. Australia’s second largest carrier has booked a 5.7 per cent increase in passenger numbers in October. Virgin carried a total of 1.74 million passengers. The rise was supported by a 7.4 per cent increase in domestic traffic but softened by a 4.3 per cent fall in international traffic. In the 2011 financial year Virgin Blue booked a net loss of $67.8 million.
Commodities
Gold is down $16.80 to $US1,734 an ounce for the February contract on Comex.
Silver is down $0.31 to $32.37 for March.
Copper is up $0.03 at $3.62 a pound.
Oil is up $0.03 at $100.99 a barrel for January light crude in New York.
