The Australian share market looks to be preparing to bounce this morning after global markets advanced on solid manufacturing reports from the US, Europe and China. Investors have also been encouraged by reports Greece is closing in on a debt deal.
Economic news
The Chinese government has reported manufacturing activity increased at the beginning of 2012. China’s Purchasing Managers’ Index increased to 50.5 in January from 50.3 the month before. The level above 50 indicates expansion.
American manufacturing improved at its strongest pace in seven months at the start of this year, though came in slightly below expectations. The Institute for Supply Management’s manufacturing index increased to 54.1 in January from 53.1 the month before. The level above 50 indicates expansion.
Manufacturing activity in Europe contracted less than expected at the beginning of this year. London-based Markit Economics purchasing managers index increased to 48.8 in January from 46.9 the month before. The read below 50 indicates contraction.
Figures
Wall Street closed started the first day of a new month higher: The Dow Jones Industrial Average added 84 points to close at 12,716, the S&P500 added 12 points to close at 1,324 and the Nasdaq added 34 points to close at 2,848.
European markets finished higher yesterday: London’s FTSE added 109 points, Paris added 69 points and Frankfurt added 158 points.
Asian markets closed mixed on Wednesday: Hong Kong’s Hang Seng lost 57 points, Tokyo Nikkei added 7 points and China’s Shanghai Composite lost 25 points.
The Australian share market extended losses on Wednesday to end 0.9 per cent lower: The S&P/ASX 200 Index lost 37 points to finish at 4,226. On the futures market the SPI is now 61 points stronger.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0705 cents, 67.62 Pence Sterling, 81.61 Yen and 81.36 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International trade in goods and services data and building approvals data for December.
Company news
Shares in Lynas Corporation Limited (ASX:LYC) rose 0.75 per cent yesterday, closing at $1.34. The Malaysian government has reportedly granted Lynas approval to operate its rare earths refinery. According to the Australian Associated Press the Atomic Energy Licensing Board has advised it will grant a temporary operating license. While Lynas is yet to officially comment on the reports the rare earths developer advised last month the Licensing Board was due to meet on January 30, 2012 to make their decision. In the 2011 financial year Lynas Corporation booked a net loss of $59 million.
Shares in Singapore Telecommunications Limited (ASX:SGT) firmed 0.87 per cent yesterday to finish at $2.32. Singtel’s Australian arm Optus has won a court ruling which will let it broadcast National Rugby League (NRL) and Australian Football League (AFL) games on mobiles and online. The Federal Court ruling has been branded a victory for consumers but has cast doubt over Telstra Corporation Limited's (ASX:TLS) $150 million deal to broadcast AFL online and future sporting broadcast rights. The AFL and NRL are expected to appeal the decision. In the first half of the 2012 financial year, SingTel recorded a net profit of $1.4 billion.
Ex-dividends
No companies are going ex-dividend today. Coming up tomorrow: Australian Foundation Investment Company Limited (ASX:AFI) and Royalco Resources Limited (ASX:RCO).
Commodities
Gold is up $9.10 to $US1,749 an ounce for the February contract on Comex.
Silver is up $0.545 to $33.81 for March.
Copper is up $0.052 at $3.84 a pound.
Oil is down $0.87 at $97.61 a barrel for March light crude in New York.
