The SPI is tipping a steady start to the week for the Australian share market. On Friday global markets were weighed down by concerns over a weak read on US growth and Greece’s ongoing talks to restructure its debt, ahead of a debt swap deal expected this week. At home no domestic economic reports are due today but a number of quarterly activity reports are expected from local energy and mining companies.
US economic news
America grew at a slower rate than expected at the end of 2011. According to the Commerce Department US economic growth came in at an annual rate of 2.8 per cent in the December quarter. The rate was the fastest last year but still below the rate of up to 3.2 per cent that was expected.
Figures
Wall Street closed mixed at the end of last week: The Dow Jones Industrial Average lost 74 points to close at 12,660, the S&P500 lost 2 points to close at 1,316 and the Nasdaq added 11 points to close at 2,817.
European markets closed lower on Friday: London’s FTSE was down 62 points, Paris was down 44 points and Frankfurt was down 28 points.
Asian markets closed mixed last week: As China wrapped up its week long Chinese New Year celebrations, Hong Kong’s Hang Seng added 63 points and Tokyo’s Nikkei down 8 on Friday.
The Australian share market added 6 points over its four trading days last week to end at a seven week high. On Friday, the S&P/ASX 200 Index pulled back from earlier gains to end 17 points higher at 4,288. On the futures market the SPI is 5 higher points.
Currencies
The Australian Dollar at 8:50AM was buying $US1.0635 cents, 67.6 Pence Sterling, 81.56 Yen and 80.4 Euro cents.
Company news
Shares in Skywest (ASX:SXR) fell 4.05 per cent on Friday, closing at $0.355. Australian and South East Asian regional airline Skywest has delivered an extra two aircraft to Virgin Australia Holdings Limited (ASX:VAH). Skywest says the operation of the aircraft will form part of the Australian Regional Airline Network agreement between the two airlines. The proposed alliance last week secured interim authorisation from the Australian Competition and Consumer Commission. In the 2011 financial year Skywest reported a net profit of $7.5 million.
Shares in Ramelius Resources Limited (ASX:RMS) rose 7.69 per cent on Friday to $1.05. The gold miner climbed to one of the day’s best performers ahead of releasing its quarterly activities report after the market closed. At the end of last year Ramelius said it held $102 million in cash and is expecting improved production from its flagship Wattle Dam project in the March quarter. In the 2011 financial year Ramelius Resources reported a net profit of $62 million.
Ex-dividends
Two companies are going ex-dividend today: Alcoa (ASX:AAI) and Trafalgar Corporate Group (ASX:TGP). Coming up later this week: Australian Foundation Investment Co. Limited (ASX:AFI) and Royalco Resources Limited (ASX:RCO).
Commodities
Gold is up $10.70 to $US1,732 an ounce for the February contract on Comex.
Silver is up $0.05 to $33.79 for March.
Copper is down $0.02 at $3.89 a pound.
Oil is down $0.14 at $99.56 a barrel for March light crude in New York.
