The Australian share market is tipped to bounce this morning after global stocks posted solid gains in light trading volume. Wall Street rose on improved housing figures. European markets lifted on an upbeat read of business confidence in Germany and strong demand for Spanish debt. The Australian dollar has returned to parity with the US currency.
US economic news
US housing starts and building permits increased more than expected to 1.5 year high last month. The Commerce Department reported housing starts gained 9.3 per cent in November from the month before and were 24.3 per cent higher from the year before to a seasonally adjusted annual rate of 685,000 units. New permits for future construction rose 5.7 per cent to a 681,000-unit pace in November.
Figures
Wall Street advanced on Tuesday: The Dow Jones Industrial Average gained 337 points to close at 12,104, the S&P500 added 36 points to close at 1,241 and the Nasdaq put on 81 points to close at 2,604.
European markets closed higher Tuesday: London’s FTSE was up 55 points, Paris was up 81 points and Frankfurt was up 176 points.
Asian markets finished mixed: Hong Kong’s Hang Seng was up 10 points, Tokyo Nikkei was up 40 and China’s Shanghai Composite eased 2 points.
The Australian share market finished 0.2 per cent down after choppy trade on Tuesday. The S&P/ASX 200 Index lost 7 points to finish at 4,053. On the futures market the SPI is 74 points stronger.
Currencies
The Australian Dollar at 8:20AM was buying $US1.0078 cents, 64.37 Pence Sterling, 78.49 Yen and 77.06 Euro cents.
Economic news
Due out today from Westpac and the Melbourne Institute: Leading indexes of economic activity for December.
Company news
Shares in Westpac Banking Corporation (ASX:WBC) closed 0.1 per cent higher on Tuesday at $20.07. Westpac has vowed to defend a class action against all the Big Four banks over allegedly exorbitant customer fees. The bank says it does not accept the claims and intends to defend the proceedings. Law firm Maurice Blackburn launched the action earlier this week on behalf of more than 150,000 customers for claims worth almost $200 million. Westpac reported a net profit of $7.1 billion in the 2011 financial year.
Shares in Leighton Holdings Limited (ASX:LEI) dipped 0.26 per cent yesterday, closing at $19.00. Leighton Holdings’ wholly owned subsidiary Leighton Asia Ltd. has been awarded $129 million of new contracts in Hong Kong. The property developer will undertake two major contracts including an $83 million contract to provide fire services, plumbing and drainage to the West Kowloon Terminus Station. Leighton will also provide a new $46 million campus for the Hong Kong Academy. In the 2011 financial year Leighton Holdings booked a net loss of $406 million.
Ex-dividends
The only company going ex-dividend today is Thorn Group Limited (ASX:TGA) with a 4 cent fully franked dividend. Among those coming up tomorrow are Aurora Absolute Return Fund (ASX:ABW) and AMP Capital China Growth Fund (ASX:AGF).
Commodities
Gold is up $20.90 to $US1,617 an ounce for the February contract on Comex.
Silver is up $0.66 to $29.54 for March.
Copper is up $0.06 at $3.37 a pound.
Oil is up $3.34 at $97.22 a barrel for January light crude in New York.
