The Australian share market looks to open lower after a decision to approve bailing-out debt-laden Greece was postponed, offsetting optimism over a pledge of support from China to assist the eurozone. At home reporting season continues with the latest result from Westpac Banking Corporation (ASX:WBC) revealing a 3 per cent drop in first-quarter cash profit, coming in below expectations at $1.5 billion.
Economic news
The eurozone economy shrank less than expected in the last three months of 2011, but still posted its first contraction since the second quarter of 2009. Eurostat, the European Union statistics office, has reported the eurozone’s gross domestic product contracted 0.3 per cent in the fourth quarter compared to the quarter before, following a gain of 0.1 per cent in the third quarter.
US economic news
Federal Reserve Bank of New York’s Empire Manufacturing index increased more than expected to 19.5 in February, from 13.5 the month before.
The Federal Reserve reported industrial production defied expectations for a rise and came in steady in January, from an increase of 1 per cent the month before.
Figures
Wall Street fell on Wednesday: The Dow Jones Industrial Average lost 97 points to close at 12,781, the S&P500 lost 7 points to close at 1,343 and the Nasdaq lost 16 points to close at 2,916.
European markets finished mixed yesterday: London’s FTSE lost 8 points, Paris added 15 points and Frankfurt added 30 points.
Asian markets finished higher on Wednesday: Hong Kong’s Hang Seng added 447 points, Tokyo Nikkei added 208 and China’s Shanghai Composite added 22 points.
The Australian share market finished a choppy session 0.25 per cent higher on Wednesday: The S&P/ASX 200 Index added 11 points to finish at 4,253. On the futures market the SPI is currently 37 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US1.07 cents, 68.19 Pence Sterling, 83.91 Yen and 81.9 Euro cents.
Economic news due out today
The Australian Bureau of Statistics: Labour force data for January
Company news
Shares in Billabong International Limited (ASX:BBG) dropped 1.65 per cent on Wednesday, closing at $1.79. Surf-wear company Billabong has reportedly received a $766 million takeover offer from a private equity suitor. According to The Australian Financial Review Billabong is understood to have received an offer from US private equity group TPG earlier this week at a 70 per cent premium to its last closing price of $1.79. Billabong was one of last year’s worst performers with its share price losing 78 per cent over the 2011 calendar year. Billabong International posted a net profit of $118 million in the 2011 financial year.
Shares in Qantas Airways Limited (ASX:QAN) rose 1.3 per cent yesterday, closing at $1.56. Australia’s largest airline is expected to announce hundreds of job cuts when it today releases its interim results. Speculation has emerged the airline could be planning to shut one of its maintenance operations in Victoria as it moves to newer aircraft that need less maintenance. Victorian Premier Ted Baillieu yesterday had a briefing from Qantas but has not as yet disclosed any details of the meeting. Qantas reported a net profit of $249 million in the 2011 financial year.
Ex-dividends
Two companies are going ex-dividend today: Academies Australasia Group Limited (ASX:AKG) with a 2 cent fully franked interim dividend and Ansell Limited (ASX:ANN) with a 15 cent unfranked interim dividend.
Commodities
Gold is up $10.40 to $US1,728 an ounce for the April contract on Comex.
Silver is up $0.06 to $33.41 for March.
Copper is down $0.013 at $3.80 a pound.
Oil is up $1.06 at $101.80 a barrel for March light crude in New York.
