The Australian share market looks to lift this morning after US markets closed higher and French and German leaders vowed to take faster action to tighten fiscal discipline in the region. At home eyes will today be on domestic economic data and China’s December trade balance due out around midday.
US economic news
Consumer credit in America has increased more than expected and by the most in a decade. The Federal Reserve has reported consumer credit rose at an annual rate of $9.9 billion to $20.4 billion in November. Expectations were for a rise of $7 billion in November following a rise of $7.6 billion the month before.
Figures
Wall Street started the week higher ahead of its fourth-quarter reporting season: The Dow Jones Industrial Average rose 33 points to close at 12,393, the S&P 500 added 3 points to 1,281 and the Nasdaq added 2 points to 2,677.
European markets dipped on Monday: London’s FTSE was down 37 points, Paris was down 10 points and Frankfurt was down 41 points.
Asian markets finished higher yesterday: Hong Kong’s Hang Seng was up 273 points, Tokyo Nikkei was closed and China’s Shanghai Composite was up 62 points.
The Australian share market posted a soft start to the week: The S&P/ASX 200 Index lost 3 points to finish at 4,105. On the futures market the SPI is 23 points higher.
Currencies
The Australian Dollar at 8:35AM was buying $US1.0244 cents, 66.28 Pence Sterling, 78.71 Yen and 80.26 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics: Building approvals data for November. From the National Australia Bank: Monthly business survey for December.
Company news
Shares in Spotless Group Limited (ASX:SPT) gained 1.72 per cent on Monday, closing at $2.37. The cleaning, catering and maintenance services provider yesterday told its suitor, Pacific Equity Partners, it would back a bid if it increased to $2.80 per share. However, the private equity fund has reportedly now rejected Spotless Group’s demands and is considering pulling its $711 million takeover offer. Sources familiar with Pacific Equity Partners have told The Australian the fund cannot justify a higher offer and Spotless Group has priced its shares unrealistically. Spotless Group posted a net profit of $42.8 million in fiscal 2011.
Shares in Pacific Brands Limited (ASX:PBG) closed steady yesterday at $0.56. The lifestyle brands retailer is reportedly considering a takeover from private equity firm Kohlberg Kravis Roberts. While neither party has yet commented on the speculation Fairfax says both are in discussions regarding a buyout that would be valued at about $600 million. Pacific Brands warned in August last year that weak retailing conditions are likely to cut into its fiscal 2012 earnings. In fiscal 2011 Pacific Brands swung from a profit to a full year net loss of $131 million.
Commodities
Gold is down $8.70 to $US1,608 an ounce for the February contract on Comex.
Silver is up $0.10 to $28.78 for March.
Copper is down $0.02 at $3.42 a pound.
Oil is down $0.25 at $101.31 a barrel for February light crude in New York.
