The Australian share market looks set for a flat start following mixed offshore leads and modest gains in Wall Street following better than anticipated jobless claim figures and reasonable earnings results.
Economic news
The Labor Department has released its weekly jobless claim figures, with 369,000 new claims this week, down by 23, 000 from last week. The four week average for unemployment claims is 368,000, a figure consistent with modest hiring.
Figures
Wall Street closed higher yesterday: The Dow Jones Industrial Average added 26 points to close at 13,104, the S&P500 is up by 4 points to close at 1,413 and the Nasdaq also added 4 points to finish at 2,986.
European markets closed mixed: London’s FTSE is flat with a gain of 0.27 points, Paris shed 15 and Frankfurt is 7 points higher.
Asian markets also closed mixed: Hong Kong’s Hang Seng added 46 points, Tokyo’s Nikkei gained 101 and China’s Shanghai Composite dropped 14 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 5 points up to finish at 4,511. On the futures market the SPI is 5 points higher.
Currencies
The Australian Dollar at 8:30AM was buying $US1.035 cents, 64.25 Pence Sterling, 83.21 Yen and 80.04 Euro cents.
Company news
GrainCorp Limited’s (ASX:GNC) proposed $2.7 billion takeover by US based Archer Daniels Midland has reportedly been described as highly dangerous by Co-operative Bulk Handling director Vernon Dempster. According to Fairfax reports, Mr Dempster says the US company’s loyalties are never going to be Australian, and if they gained control of grain ports in the eastern states, they would simply utilise the monopoly power for their own advantage. Shares in Graincorp finished flat yesterday at $12.17.
BHP Billiton Limited (ASX:BHP) chief Marius Kloppers says governments need to play their part in easing regulatory pressure on the mining sector as the global market remains volatile. Mr Kloppers says while BHP remains robust, government controlled costs are stripping close to half of the global miners profits from domestic projects. BHP shares finished yesterday 0.17 per cent higher at $34.37.
Ex-dividends
Clover Corporation Limited (ASX:CLV) with a fully franked dividend of 1.75 cents.
SteriHealth Limited (ASX:STP) with a 7 cent dividend also fully franked.
Commodities
Gold is up $11.40 to $US1,713 an ounce for the December contract on Comex. Silver is up $0.46 to $32.08 for December. Copper is down $0.02 at $3.55 a pound. Oil is up $0.32 at US$86.05 a barrel for December light crude in New York.
