The Australian share market is tipped for a soft start to the day with the SPI marginally higher and after US markets closed mixed, despite the central bank meeting investors expectations for further quantitative easing.
US economic news
The Federal Reserve revealed it would hold interest rates near zero until the US unemployment rate fell to 6.5 per cent and provided inflation remained below 2.5 per cent over the next 12-24 months.
Figures
Wall Street closed mixed yesterday: The Dow Jones Industrial Average lost 3 points to close at 13,245, the S&P500 added 1 point to close at 1,428 and the Nasdaq lost 8 points to close at 3,014.
European markets closed up : London’s FTSE added 21 points, Paris was up 0.5 point and Frankfurt added 25 points.
Asian markets closed up: Hong Kong’s Hang Seng added 179 points, Tokyo’s Nikkei added 63 and China’s Shanghai Composite added 8 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 8 points up to finish at 4,584. On the futures market the SPI is 3 points higher.
Currencies
The Australian Dollar at 8:25AM was buying $US1.055, 65.39 Pence Sterling, 87.81 Yen and 80.77 Euro cents.
Economic news
Due out today from the Melbourne Institute is consumer inflation expectations for December, also out today from the ABS is new motor vehicle sales for November.
Company news DEXUS Property Group
(ASX:DXS) is reportedly poised to sell its remaining US industrial assets. Media reports suggest the portfolio worth about $US540 million will be acquired in two tranches by Chicago-based manager Heitman and the National Pension Service of Korea. Shares in Dexus Property Group closed 3.4 per cent lower yesterday at $0.995.
Forge Group Limited’s
(ASX:FGE) wholly owned subsidiary CTEC pty Ltd has been awarded a $105 million contract by Worleyparsons Limited
(ASX:WOR) to develop a power station in Western Australia. Under the terms of the contract, CTEC will develop BHP Billiton Limited
(ASX:BHP) Yarnima’s power station, three kilometres northwest of Newman in the Pilbara region. Forge Group’s chief says the contract represents the second major contract for the group this year. Shares in Forge Group closed 7.48 per cent up yesterday at $4.31.
Commodities
Gold is up $8.30 to $US1,718 an ounce for the February contract on Comex. Silver is up $0.76 to $33.78 for March. Copper is up $0.03 at $3.72 a pound. Oil is up $0.98 at US$86.77 a barrel for January light crude in New York.
