The Australian share market looks tipped to rise this morning after global markets rallied on the back of better than expected economic figures from Germany, China, India and the US.
US economic news
Manufacturing in America improved at a stronger pace last month. The Institute of Supply Management's survey of manufacturing purchasing managers increased from 52.7 to 53.9 in December. The figure came in higher than expected and over the 50-level which indicates expansion in the sector.
The Commerce Department reported construction spending increased 1.2 per cent in November, following a revised 0.2 per cent fall the month before. The figures came in higher than expected.
Figures
After being closed on Monday for the new year holiday, Wall Street started 2012 with a bang: The Dow Jones Industrial Average advanced 180 points to close at 12,397, the S&P500 gained 19 points to close at 1,277 and the Nasdaq lifted 44 points to close at 2,649.
European stocks also finished higher on Tuesday: London’s FTSE was up 128 points, Paris was up 23 points and Frankfurt was up 91 points.
To Asian markets: Hong Kong’s Hang Seng rose 443 points while Tokyo Nikkei and China’s Shanghai Composite were closed.
Yesterday the Australian share market started the first day of the trading year more than 1 per cent stronger. The S&P/ASX 200 Index gained 45 points to finish at 4,101. On the futures market the SPI is 30 points higher.
Currencies
The Australian Dollar at 8:50AM was buying $US1.0378 cents, 66.32 Pence Sterling, 79.61 Yen and 79.52 Euro cents.
Company news
Shares in Santos Limited (ASX:STO) closed 0.82 per cent higher on Tuesday at $12.34. Santos has come under fire from the NSW Greens, according to the Australian Financial Review. The Greens claim the oil and gas company is not paying enough to the state government for every active well inherited from its recent acquisition of Eastern Star Gas Limited (ASX:ESG). Santos has denied the allegations and says it will pay more than $150 million per year in royalties over 20 years if its NSW coal seam gas business is developed successfully. In the 2011 financial year Santos reported a net profit of $504 million.
Shares in Newcrest Mining Limited (ASX:NCM) closed 3.72 per cent higher yesterday at $30.70. Newcrest looks sure to be eyeing political developments in Fiji, the location of its Waisoi deposit, believed to be one of the largest undeveloped copper/gold deposits in the world. Fairfax Media says Fiji's political turmoil has presented development hurdles for Newcrest and the company would be a big winner if the situation improves. Newcrest has not as yet commented on the most recent political changes in Fiji, but earlier flagged it’s aiming to finish a feasibility study into development options by June. In the 2011 financial year Newcrest Mining reported a net profit of $966 million.
Ex-dividends
Centro Properties Group (ASX:CNP) is the only company going ex-dividend today with a 1 cent fully franked dividend. Coming up tomorrow is Programmed Maintenance Services Limited (ASX:PRG).
Commodities
Gold is up $33.70 to $US1,600 an ounce for the February contract on Comex.
Silver is up $1.66 to $29.57 for March.
Copper is up $0.09 at $3.53 a pound.
Oil is up $4.13 at $102.96 a barrel for February light crude in New York.
