The Australian sharemarket is expected to open stronger this morning following positive US data and helped by a successful Spanish bond issue.
US economic news
Jobless claims have hit the lowest levels in three and a half years. Initial claims dropped 19,000 to a seasonally adjusted 366,000 last week.
More positive news, the US trade deficit fell to its lowest level in almost two years. The current account deficit fell 11.6 per cent to $US110.3 billion.
The Federal Reserve Bank of Philadelphia’s general economic index increased to 10.3 in December from 3.6 last month. Readings greater than zero indicate expansion in Pennsylvania, Delaware and southern New Jersey.
And the New York Federal Reserve Bank’s general business conditions index rose to 9.53 in December, the highest since May.
The figures
The Dow Jones Industrial Average gained 45 points to close at 11,869, the S&P500 rose 4 points to close at 1,216 and the Nasdaq gained 2 points to close at 2,541.
European stocks closed higher: London’s FTSE was up 34 points, Paris gained 23 points and Frankfurt rose 55 points.
To Asian markets, stocks finished lower: Hong Kong’s Hang Seng fell 328 points, Tokyo’s Nikkei dropped 142 points and China’s Shanghai Composite lost 48 points.
The Australian share market closed lower on Thursday. The S&P/ASX 200 Index fell 51 points to close at 4,140. On the futures market the SPI is currently 19 points stronger.
Currencies
The Australian Dollar at 8:25AM is buying $US0.9915, 63.93 Pence Sterling, 77.3 Yen and 76.18 Euro cents.
Company news
Yesterday shares in Fairfax Media Limited (ASX:FXJ) closed 0.67 per cent higher at $0.75. The Age newspaper has won a Supreme Court injunction against the removal of computer equipment by Victorian Police. Detectives issued a search warrant yesterday and seized computers and documents. The investigation relates to allegations journalists broke the law by accessing an ALP database of electoral information. Last night the paper took out an injunction against Victoria Police stopping the removal of computer equipment. The injunction will be challenged today. In the 2011 financial year Fairfax Media reported a net loss of $390 million.
Yesterday shares in JB Hi-Fi Limited (ASX:JBH) closed 1.57 per cent lower at $15.00. The electronics retailer has warned of a 5 per cent drop in pre-tax earnings for the first half. Sales for the first five months of the financial year were up 7.8 per cent on the previous corresponding period, and up 6.6 per cent in the first quarter. But when the benefit of new store openings was taken out, sales were actually down 3.5 per cent in the first quarter and down 1.8 per cent in the first five months of the financial year. Chief executive Terry Smart says competitors are selling stock below cost to attract customers or clear excess stock. JB promises to beat any market price, forcing the retailer to sell even further below cost price. In the 2011 financial year JB Hi-Fi reported a net profit of $110 million.
Ex-dividends
There’s one company going ex-dividend today. It is Singapore Telecommunications with a $0.052 unfranked dividend. On Monday Skywest is coming up.
Commodities
Gold is down $9.70 to $US1,577 an ounce for the February contract on Comex. Silver has gained $0.34 to $29.27 for March. Copper has dropped by $0.01 at $3.27 a pound. Oil is down $1.08 at $93.87 a barrel for January light crude in New York.
