The Australian share market is set to extend the weekly gain and post a monthly gain after US and European markets closed higher. US stocks did however pull back from highs as fiscal cliff concerns continue to drag on sentiment. Locally annual general meetings will again hold the focus.
US economic news
The Commerce Department has reported US gross domestic product (GDP) grew more than expected in the third quarter. GDP rose at a 2.7 per cent annual rate in the September quarter, up from a rate of 1.3 per cent in the prior quarter.
The Labor Department has reported weekly claims for unemployment benefits dropped by 23,000 to 393,000 last week.
The National Association of Realtors has reported pending home sales rose 5.2 per cent in October from the year before.
Figures
Wall Street closed higher on Thursday The Dow Jones Industrial Average added 37 points to close at 13,022, the S&P500 added 6 points to close at 1,416 and the Nasdaq added 20 points to close at 3,012.
European markets also gained on Thursday: London’s FTSE added 67 points, Paris added 54 points and Frankfurt added 58 points.
Asian markets closed mixed on Thursday: Hong Kong’s Hang Seng added 214 points, Tokyo’s Nikkei added 93 and China’s Shanghai Composite lost 10 points.
The Australian share market rose throughout yesterday, closing 0.7 per cent up at the sessions high: The S&P/ASX 200 Index gained 30 points on Thursday to close at 4,478. On the futures market the SPI is now 21 points higher.
Currencies
The Australian Dollar at 8:25AM was buying $US1.043 cents, 65.08 Pence Sterling, 85.71 Yen and 80.44 Euro cents.
Economic news due out today
Reserve Bank of Australia are financial aggregates for October
Company news BHP Billiton Limited’s
(ASX:BHP) Chairman Jac Nasser has refused to give any indication on the global miner’s time frame for choosing a new chief. Speaking at BHP’s annual general meeting yesterday Mr Nasser threw his support behind current CEO Marius Kloppers amid speculation the company has already started a search for his successor. The company also went into defensive mode when some shareholders criticised the size of BHP’s dividends and cash returns. Shares in BHP Billiton firmed 0.62 per cent on Thursday, closing at $34.21.
Sirtex Medical Limited’s
(ASX:SRX) chief Gilman Wong has been named as the CEO of the year. The award presented from The CEO Magazine comes as biotech company sets its sights on becoming a billion dollar company, having steadily boosted its share price over the year. Separately, Chairman John Eady said yesterday investors should expect increases in executive pay to reflect the significant lift in the company’s market capitalisation and improved future prospects. Shares in Sirtex Medical rose 1.74 per cent on Thursday, closing at $11.70.
Commodities
Gold is up $10.70 to $US1,727 an ounce for the December contract on Comex.
Silver is up $0.66 to $34.35 for December.
Copper is up $0.06 at $3.59 a pound.
Oil is up $1.58 at $US88.07 a barrel for January light crude in New York.
