The Australian share market looks set to pare the weekly gain after US and European markets dropped overnight. Investors continued to worry about the US political stalemate ahead of the looming fiscal cliff deadline, offsetting positive US economic data and the latest Federal Reserve stimulus measures.
US economic news
Initial jobless claims declined more than expected over last week: The Labor Department reported the number of Americans seeking unemployment benefits dropped by 29,000 last week to a two-month low of 343,000.
Retail sales recorded a rebound last month: The Commerce Department reported retail sales rose 0.3 per cent in November after falling 0.3 per cent the month before.
Producer prices have fallen for the second consecutive month: The Commerce Department reported producer prices fell 0.8 per cent in November, while year-on-year the producer price index was up 1.5 per cent.
Figures
Wall Street fell on Thursday: The Dow Jones Industrial Average lost 75 points to close at 13,171, the S&P500 lost 9 points to close at 1,419 and the Nasdaq lost 22 points to close at 2,992.
European markets also pulled back on Thursday: London’s FTSE lost 16 points, Paris lost 4 points added Frankfurt lost 33 points.
Asian markets ended mixed on Thursday: Hong Kong’s Hang Seng lost 58 points, Tokyo’s Nikkei added 161 points and China’s Shanghai Composite lost 21 points.
The Australian share mark hovered throughout yesterday’s session ending where it began: The S&P/ASX 200 index lost 1 point on Thursday to finish at 4,583. On the futures market the SPI is now 14 points lower.
Currencies
The Australian Dollar at 8:15AM was buying $US1.052 cents, 65.36 Pence Sterling, 88.02 Yen and 80.52 Euro cents.
Company news National Australia Bank Limited
(ASX:NAB) has warned next year will be a challenge and restructuring its UK business will continue into 2013. The bank’s net profit slumped 22 per cent in the last financial year because of its troubled UK operations. Chairman Michael Chaney conceded the result was below budget but assured investors its UK arm would become largely self-funded and profitable after the overall. Shares in National Australia Bank lost 0.24 per cent on Thursday to close at $24.60.
Bank of Queensland Limited
(ASX:BOQ) has defended its strategy after the Brisbane-based regional lender booked the first annual loss by an Australian bank in two decades. Chairman Neil Summerson says the bank would have recorded an annual profit, instead of a $17 million loss, if it were not for adopting a conservative approach to provisions. Mr Summerson says the bank has witnessed early signs of a rebound in property values and has reason to be optimistic. Shares in Bank of Queensland lost 0.97 per cent on Thursday to close at $7.16.
Ex-dividends next week
Amadeus Energy Limited
(ASX:AMU) with a 2 cent unfranked dividend
Singapore Telecommunications Limited
(ASX:SGT) with a 6.8 cent unfranked dividend
Thorn Group Limited
(ASX:TGA) with a 4.5 cent fully franked dividend
Australian Infrastructure Fund Limited
(ASX:AIX) with a 5.5 cent fully franked dividend
APA Group
(ASX:APA) with a 17 cent unfranked dividend
Aspen Group Limited
(ASX:APZ) with a 0.75 cent unfranked dividend
Australian Enhanced Income Fund
(ASX:AYF) with a 11.25 cent, 40.05 per cent franked dividend
Commodities
Gold is down $21.10 to $US1,697 an ounce for the February contract on Comex.
Silver is down $1.42 to $32.36 for March.
Copper is down $0.05 at $3.67 a pound.
Oil is down $0.88 at $US85.89 a barrel for January light crude in New York.
