The Australian share market looks poised for a soft start to the day after European and US markets dragged on doubts over Greece’s bailout plan.
Economic news
China's manufacturing activity improved this month but is still at the level that indicates contraction. The preliminary HSBC “flash” purchasing managers index increased to 49.7 in February from 48.8 the month before but was still under 50, the level that separates contraction from expansion.
American house prices have dropped to the lowest level in more than a decade. According to the National Association of Realtors the median price of a home in the US dropped 2 per cent to $US154,700 in January 2012.
Figures
Wall Street closed lower on Wednesday: The Dow Jones Industrial Average lost 40 points to close at 12,905, the S&P500 lost 5 points to close at 1,355 and the Nasdaq lost 14 points to close at 2,778.
European markets also finished lower: London’s FTSE lost 12 points, Paris lost 18 points and Frankfurt lost 64 points.
Asian markets finished higher on Wednesday: Hong Kong’s Hang Seng added 71 points, Tokyo Nikkei added 91 and China’s Shanghai Composite added 22 points.
The Australian share market ended the day almost where it started on Wednesday: The S&P/ASX 200 Index added 2 points to finish at 4,293. On the futures market the SPI is now 12 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0635 cents, 67.91 Pence Sterling, 85.44 Yen and 80.35 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Average weekly time earnings for three months to November 2011
Company news
Shares in Newcrest Mining Limited (ASX:NCM) gained 2.14 per cent on Wednesday, closing at $35.85, after Newcrest said it had received conditional approval to list on the Toronto Stock Exchange in Canada. The gold mining company now expects to start trading in early March, having earlier targeted the end of the first quarter. CEO Greg Robinson said last year the listing is putting Newcrest in the major gold market of North America directly against its competitors. Newcrest Mining reported a net profit of $684 million in the last six months of 2011.
Shares in Asciano Limited (ASX:AIO) rose 3.24 per cent yesterday, closing at $4.78, after the ports and rail operator posted a stronger first half profit and flagged growth in the second half. Asciano increased its first half net profit by 21 per cent to $114 million. In the same period EBITDA grew 9 per cent and is expected to be higher in the second half. A fully-franked interim dividend of 3.5 cents per share has been declared.
Ex-dividends
Bendigo and Adelaide Bank Limited (ASX:BEN)
GPT Group (ASX:GPT)
Mincor Resources NL (ASX:MCR)
Pacific Brands Limited (ASX:PBG)
Pro-Pac Packaging Limited (ASX:PPG)
Swick Mining Services Limited (ASX:SWK)
Treasury Wine Estates Limited (ASX:TWE)
Commodities
Gold is up $12.80 to $US1,771 an ounce for the April contract on Comex.
Silver is down $0.175 to $34.25 for March.
Copper is steady at $3.83 a pound.
Oil is up $0.03 at $106.28 a barrel for March light crude in New York.
