The Australian share market looks set for a cautiously optimistic start to the day after European markets gained on hopes for a positive outcome to Greek debt-swap talks. Wall Street investors remained on the sidelines with the US central bank due to start a two day meeting today. With no domestic data scheduled eyes will continue to remain fixed on European developments and awaiting US forecasts for the federal funds rate and fourth quarter GDP figures due later in the week.
Figures
After closing last week more than 2 per cent higher, Wall Street started its trading week steady. The Dow Jones Industrial Average lost 12 points to close at 12,709, the S&P500 added 0.6 points to close at 1,316 and the Nasdaq lost 3 points to close at 2,784.
European markets started the week higher: London’s FTSE was up 54 points, Paris was up 17 points and Frankfurt was up 32 points.
Asian Markets: China, Hong Kong and many other Asian nations were closed for New Year public holidays on Monday. In Japan, Tokyo’s Nikkei lost 0.4 points on Monday.
The Australian share market posted a soft start to the week: The S&P/ASX 200 Index lost 15 points to finish at 4,225. On the futures market the SPI is now 16 points higher.
Currencies
The Australian Dollar at 8:35AM was buying $US1.0537 cents, 67.67 Pence Sterling, 81.17 Yen and 80.88 Euro cents.
Company news
Shares in ANZ Banking Group (ASX:ANZ) eased 0.1 per cent on Monday, closing at $20.87. ANZ’s push into Asia continues with reports emerging the bank is trying to secure a licence to establish a wholly owned subsidiary in Thailand. According to the Australian Financial Review ANZ’s chief Mike Smith met with Thailand Prime Minister at the end of last week to negotiate reducing the two-year waiting period. ANZ is targeting to generate up to 30 per cent earnings growth in Asia by 2017. ANZ reported a net profit of $5.4 billion in the 2011 financial year.
Shares in Telstra Corporation Ltd (ASX:TLS) dipped 0.3 per cent yesterday, closing at $3.32. Australia’s first 4G smartphone is due to hit the shelves today. Telstra says its first 4G smartphone, the HTC Velocity 4G, will enable customers in 4G coverage areas to surf the mobile internet on their phones up to five times faster. Telstra started rolling out its fourth generation wireless mobile internet technology in August last year and now has 4G speeds available to 40 per cent of its network. In the 2011 financial year Telstra posted a net profit of $3.25 billion.
Ex-dividends
Only one company is going ex-dividend today and that is Techniche Limited (ASX:TCN) with an unfranked 0.13 cent interim dividend. Coming up tomorrow are Eldorado (ASX:EAU), Ozgrowth Limited (ASX:OZG) and Westoz Investment Company Limited (ASX:WIC).
Commodities
Gold is up $14.30 to $US1,678 an ounce for the February contract on Comex.
Silver is up $0.60 to $32.27 for March.
Copper is up $0.05 at $3.80 a pound.
Oil is up $1.25 at $99.58 a barrel for March light crude in New York.
