Upbeat Chinese manufacturing data released yesterday is expected to give the Australian share market a boost this morning. Despite a soft performance from Wall Street on Friday, as fiscal cliff concerns weighed, local stocks are tipped to start a new month and week of trade stronger as local investors look to a series of domestic economic indicators for direction ahead of the Reserve Bank of Australia’s decision on interest rates tomorrow.
Chinese economic data
China’s National Bureau of Statistics has reported the official purchasing managers index increased to 50.6 in November, hitting a seventh month high and remaining above the 50 level which indicates expansion.
Figures
Wall Street closed little changed at the end of last week: The Dow Jones Industrial Average added 4 points to close at 13,026, the S&P500 closed in positive territory at 1,416 and the Nasdaq closed in negative territory at 3,010.
European markets finished mixed at the end of last week: London’s FTSE dipped 3 points, Paris lost 12 points added Frankfurt firmed 5 points.
Asian markets closed higher at the end of last week: Hong Kong’s Hang Seng added 108 points, Tokyo’s Nikkei added 45 and China’s Shanghai Composite added 17 points.
The Australian share mark lifted at the end of last week, despite losing 0.2 per cent over the month of November: The S&P/ASX 200 index advanced 28 points on Friday, extending the weekly gain of 93 points to finish at 4,506. On the futures market the SPI is now 12 points higher.
Currencies
The Australian Dollar at 8:20AM was buying $US1.043 cents, 65.21 Pence Sterling, 86.01 Yen and 80.45 Euro cents.
Economic news due out today Reserve Bank of Australia: Index of commodity prices for November
The Australian Bureau of Statistics: Retail trade figures for October and Business Indicators for September quarter
Dun & Bradstreet: Business expectations survey
ANZ Banking Group
(ASX:ANZ): Job advertisements series for November
TD Securities-Melbourne Institute: Inflation gauge for November
Australian Industry Group: The Australian Performance of Manufacturing Index for November
Company news Australia’s largest gold producer Newcrest Mining Limited
(ASX:NCM) has inked a deal with its long standing partner, Indonesian mining and minerals processing company Aneka Tambang
(ASX:ATM), also known as Antam. Antam will pay Newcrest pay $US160 million to increase its ownership in the Gosowong gold mine in north eastern Indonesia to 25 per cent. Newcrest says Antam’s purchase of an extra 7.5 percent of Gosowong will enable Newcrest to realise a return on its investment in the mine at fair market value and allow both companies to deepen their relationship. Shares in Newcrest Mining firmed 0.16 per cent on Friday, finishing the week at $25.65.
Aquila Resources Limited
(ASX:AQA) has flagged more than $2 billion in cost cuts as it strives to finance its projects. The coal producer is also understood to be looking for a co-investor for its $1.2 billion Eagle Downs coking coal project in Queensland. Aquila held $477 million at the end of September with no debt and is currently also developing the $7.4 billion West Pilbara iron ore project. Shares in Aquila Resources fell 3.33 per cent on Friday, finishing the week at $2.32.
Ex-dividends today
Australian Masters Corporate Bond Fund Number 5 Limited
(ASX:AKY) with a 89 cent fully franked dividend
Aristocrat Leisure Limited
(ASX:ALL) with a 2 cent unfranked dividend
Alesco Corporation Limited
(ASX:ALS) with a 27 cent fully franked dividend
BT Investment Management Limited
(ASX:BTT) with a 7 cent fully franked dividend
CI Resources Limited
(ASX:CII) with a 1 cent fully franked dividend
Ex-dividends this week
Collins Foods Limited
(ASX:CKF) with a 4 cent fully franked dividend
Lemarne Corporation Limited
(ASX:LMC) with a 7 cent unfranked dividend
Commodities
Gold is up $0.20 to $US1,713 an ounce for the February contract on Comex.
Silver is down $1.15 to $33.28 for March.
Copper is up $0.01 at $3.65 a pound.
Oil is up $0.84 at $US88.91 a barrel for January light crude in New York.
