The Australian share market looks set for a soft start after Wall Street pulled back from its strong start to the year and European markets closed lower.
US economic news
The Census Bureau reported that factory orders rose 1.8 per cent in November after a downwardly revised fall of 0.2 per cent the month before. The latest rise was the largest since July but came in less than had been expected.
Figures
After posting a strong start to 2012 Wall Street closed mixed on Wednesday: The Dow Jones Industrial Average rose 21 points to close at 12,418, the S&P500 finished flat at 1,277 and the Nasdaq also closed flat at 2,648.
European stocks also finished lower on Wednesday: London’s FTSE was down 31 points, Paris was down 52 points and Frankfurt was down 55 points.
Asian markets closed mixed yesterday: Hong Kong’s Hang Seng was down 150 points, Tokyo Nikkei was up 105 points and China’s Shanghai Composite was down 30 points.
Yesterday the Australian share market hit a three week high after jumping 2.11 per cent on Wednesday: The S&P/ASX 200 Index advanced 87 points to finish at 4,188. On the futures market the SPI is now 13 points lower.
Currencies
The Australian Dollar at 8:45AM was buying $US1.037 cents, 66.41 Pence Sterling, 79.58 Yen and 80.13 Euro cents.
Economic news due out
From the Australian Bureau of Statistics: International trade in goods and services data for November. From the Australian Industry Group and Commonwealth Bank: Performance of Services Index for December. From the Federal Chamber of Automotive Industries: 2011 Motor industry results.
Company news
Shares in ANZ Banking Group (ASX:ANZ) rose 1.64 per cent on Wednesday, closing at $21.02. ANZ has confessed that its E*Trade online trading business was struck by hackers over the festive period. The cyber attack resulted in restricted access for foreign customers among countries including the US, UK, UAE, China and Japan. An ANZ spokesperson has told Fairfax media the bank responded immediately and at no stage was security of the E*Trade site breached. ANZ reported a net profit of $5.4 billion in the 2011 financial year.
Shares in Commonwealth Bank of Australia (ASX:CBA) closed 0.77 per cent higher yesterday at $49.99. Commonwealth Bank has become the first Australian bank to launch a euro-denominated covered bond issue. CBA delayed its planned issue in November as the sovereign debt crisis intensified. The launch comes following the Federal Government’s changes to legislation last year that now enables banks to offer the debt. In the 2011 financial year Commonwealth Bank reported a net profit to $6.4 billion.
Ex-dividends
Programmed Maintenance Services Limited (ASX:PRG) is the only company going ex-dividend today with a 5 cent fully franked dividend.
Commodities
Gold is up $12.20 to $US1,612 an ounce for the February contract on Comex.
Silver is down $0.48 to $29.10 for March.
Copper is down $0.09 at $3.43 a pound.
Oil is up $0.26 at $103.22 a barrel for February light crude in New York.
