The Australian sharemarket is expected to open stronger this morning, the last trading day before Christmas, with positive US jobs data and a rally on European markets pulling the market higher.
US economic news
Jobless claims have hit the lowest levels since April 2008. Initial claims dropped 4,000 to a seasonally adjusted 364,000 last week.
Gross domestic product grew at a 1.8 per cent annual rate in the third quarter, down from a previous estimate of 2 per cent growth. Growth less than 2 per cent is considered so weak it can feel like a recession.
The figures
The Dow Jones Industrial Average gained 62 points to close at 12,170, the S&P500 rose 10 points to close at 1,254 and the Nasdaq gained 21 points to close at 2,599.
European stocks closed higher: London’s FTSE was up 67 points, Paris gained 41 points and Frankfurt rose 61 points.
To Asian markets, stocks finished lower: Hong Kong’s Hang Seng fell 38 points, Tokyo’s Nikkei dropped 65 points and China’s Shanghai Composite lost 5 points.
The Australian share market closed lower on Thursday. The S&P/ASX 200 Index fell 49 points to close at 4,091. On the futures market the SPI is currently 37 points stronger.
Currencies
The Australian Dollar at 8:35AM is buying $US1.0133, 64.65 Pence Sterling, 79.23 Yen and 77.66 Euro cents.
Company news
Yesterday shares in iiNet Limited (ASX:IIN) closed 0.35 per cent higher at $2.86. iiNet has bought Internode for $105 million. iiNet’s chief executive Michael Malone says the acquisition strengthens the company’s position as the leading challenger brand and new number two provider of DSL broadband. Internode will trade as a separate business unit, retaining its brand under the management of founder Simon Hackett. The company has 260,000 active internet and phone services, including 190,000 broadband subscribers. In the 12 months to June 30, 2011 iiNet reported a net profit of $33 million.
Yesterday shares in Flight Centre Limited (ASX:FLT) closed 5.73 per cent lower at $17.60. Flight Centre and Air Australia officials are set to meet today to resolve a dispute regarding insolvency insurance. That’s according to The Australian. Flight Centre has been asking customers who book with the new carrier to sign a waiver acknowledging their travel insurance won’t cover the airline if it becomes insolvent. Air Australia says that’s damaging its reputation. For the year to June 30, 2011, Flight Centre reported a net profit of $140 million.
Ex-dividends
There’s one company going ex-dividend today. It is G8 Education with a $0.01 fully franked dividend. On Wednesday Clime Capital is coming up.
Commodities
Gold is down $3.00 to $US1,610 an ounce for the February contract on Comex. Silver has fallen $0.20 to $29.05 for March. Copper has gained $0.02 at $3.42 a pound. Oil is up $0.86 at $99.53 a barrel for February light crude in New York.
