The Australian share market could be headed on to positive territory this morning after a better than expected US jobs report and upbeat Chinese inflation figures. However, the looming US fiscal cliff could temper gains as investors monitor budget negotiations targeting a resolution by the year-end deadline.
Chinese economic news
The National Bureau of Statistics reported China’s inflation has rebounded from a 33-year low. The inflation rate rose to 2 per cent year-on-year in November after sitting at 1.7 per cent the month before.
US economic news
America’s economy added more jobs than expected and the unemployment rate dropped to a four year low last month. The Labor Department reported the economy gained 146,000 jobs in November, pushing the unemployment rate down 0.2 per cent to 7.7 per cent.
Figures
Wall Street finished mixed end of last week: The Dow Jones Industrial Average added 81 points to close at 13,155, the S&P500 added 4 points to close at 1,418 and the Nasdaq lost 11 points to close at 2,978.
European markets closed mixed at the end of last week: London’s FTSE added 13 points, Paris added 4 points added Frankfurt lost 17 points.
Asian markets also ended mixed at the end of last week: Hong Kong’s Hang Seng lost 116 points, Tokyo’s Nikkei lost 28 and China’s Shanghai Composite added 33 points.
The Australian share mark gained almost 1 per cent at the end of last week: The S&P/ASX 200 index advanced 43 points on Friday, extending the weekly gain of 46 points to finish last week at 4,552. On the futures market the SPI is now 6 points higher.
Currencies
The Australian Dollar at 8:25AM was buying $US1.049 cents, 65.43 Pence Sterling, 86.56 Yen and 81.42 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance for October
Company news Southern Cross Media Group Limited
(ASX:SXL) is expected to today release a statement in response to a prank from Sydney radio station 2Day FM that has attracted world-wide condemnation. Southern Cross Austereo directors held crisis talks over the weekend after a British nurse, who was contacted by two Australian radio hosts as part of a hoax, died from an apparent suicide last week. Following the incident the company suspended all advertising from 2Day FM as it reviews the broadcast and processes involved and has taken the two radio hosts off the air until further notice. Shares in Southern Cross Media Group rose 1.84 per cent on Friday to finish the week at $1.11.
After hitting a record high last week Australia's largest lender, Commonwealth Bank of Australia
(ASX:CBA), could break through the $100 billion market capitalisation-barrier this week. The gains came in the same week the Reserve Bank of Australia (RBA) cut rates to GFC lows, chipping 25 basis points off the key cash rate to now sit at 3 per cent. CBA has partially passed on the RBA’s cut, lowering its standard variable rate by 20 basis points to 6.4 per cent per annum. Shares in Commonwealth Bank of Australia rose 0.86 per cent on Friday to finish the week at $60.88.
Ex-dividends today
AHC Limited
(ASX:AHC) with a 10 cent fully franked dividend
Metcash Limited
(ASX:MTS) with an 11.5 cent fully franked dividend
Ex-dividends this week
Ironbark Capital Limited
(ASX:IBC) with a 2 cent fully franked dividend
James Hardie Industries plc
(ASX:JHX) with a 5 cent unfranked dividend
Commodities
Gold is up $3.70 to $US1,705 an ounce for the February contract on Comex.
Silver is up $0.02 to $33.13 for March.
Copper is up $0.02 at $3.66 a pound.
Oil is down $0.33 at $US85.93 a barrel for January light crude in New York.
