Despite overseas markets slipping, a higher SPI is suggesting the Australian share market may open higher on a day of earnings reports from companies like NAB, Macquarie, Cochlear and Transurban. The Reserve Bank is also holding its monthly board meeting today, where economists have tipped the official cash rate to be cut.
World economic news
The International Monetary Fund says a sharp downturn in Europe could cut China’s economic growth rate in half. Yesterday it issued a warning that Beijing should be ready to launch a multi-billion dollar stimulus plan, after it said its forecast 8.2 per cent growth for China could be reduced by up to four percentage points if Europe’s crisis causes declines in credit.
Figures
US markets have dropped the Dow Jones is down 17 points, to 12,845. The S&P 500 is down just under one point to 1,344 and the Nasdaq has lost four points to 2,902.
European markets finished lower yesterday: London’s FTSE lost 8.87 points, Paris lost 22.65 points and Frankfurt has lost 1.84 points.
Asian markets are mixed yesterday: Hong Kong’s Hang Seng lost 47 points, Tokyo Nikkei added 97 points and China’s Shanghai Composite added 0.73 points.
The Australian share market finished more than one per cent higher yesterday: The S&P/ASX 200 Index is up 45 points to finish at 4,296. On the futures market the SPI is now 13 points higher.
Currencies
The Australian Dollar at 8:30am was buying $US1.0728 cents, 67.81 Pence Sterling, 82.16 Yen and 81.74 Euro cents.
Economic news
Due out today from Dun and Bradstreet are its business expectations survey; and the Australian Industry Group/Housing Industry Association’s performance of construction index (PCI) for January.
Company news
Shares in OM Holdings Limited (ASX:OMH) closed 4.11 per cent higher to 38 cents Monday. The diversified minerals firm has announced plans to construct a $466 million manganese smelter in Malaysia. Its executive chairman’s told Fairfax Media he thinks alloy producers are making more money than ore producers, so OM Holdings wants to make sure it covers both ore supply and smelting. OM Holdings reported a net profit of $10 million in the first half of the 2011 calendar year.
Shares in National Australia Bank Limited (ASX:NAB) firmed 1.77 per cent yesterday to close at $24.17. The bank has posted unaudited cash earnings of $1.4 billion for the first quarter, higher than the $1.3 billion result from the previous corresponding period. Unaudited net profit attributable to shareholders for the first quarter was approximately $1.6 billion. It says it’s well placed, despite a range of headwinds. NAB posted an annual net profit of $5.2 billion in the 2011 financial year.
Ex-dividends
Greencap Limited is going ex dividend with a fully franked 25 cents. Tomorrow there are no companies scheduled to go ex dividend but on Thursday there are four.
Commodities
Gold is down $15.40 to $US1,724.90 an ounce for the February contract on Comex. Silver is up $0.00.1 to $33.75 for March. Copper is down 3.7 cents at $3.877 a pound. Oil is down 93 cents at $96.91 a barrel for March light crude in New York.
