The Australian share market is set for gains this morning fueled by hopes America is moving closer to resolving the budget stalemate ahead of the year-end fiscal cliff deadline. As Christmas approaches trade is thinning but the Reserve Bank of Australia’s latest board meeting minutes could offer some direction.
US economic news
The New York Federal Reserve has reported manufacturing conditions have softened more than expected this month. The index dropped to -8.1 in December from -5.2 the month before, with a read below zero indicating shrinking activity.
Figures
Wall Street started the week higher: The Dow Jones Industrial Average added 100 points to close at 13,235, the S&P500 added 17 points to close at 1,430 and the Nasdaq added 39 points to close at 3,011.
European markets fished mixed on Monday: London’s FTSE lost 10 points, Paris lost 5 points lost Frankfurt added 8 points.
Asian markets also closed mixed on Monday: Hong Kong’s Hang Seng lost 92 points, Tokyo’s Nikkei added 91 and China’s Shanghai Composite added 10 points.
The Australian share mark started the week in negative territory: The S&P/ASX 200 index lost 10 points on Monday to finish at 4,573. On the futures market the SPI is now 24 points higher.
Currencies
The Australian Dollar at 8:20AM was buying $US1.055 cents, 65.14 Pence Sterling, 88.49 Yen and 80.2 Euro cents.
Economic news due out today
Reserve Bank of Australia: December monthly board meeting minutes
Australian Bureau of Statistics: International merchandise imports for November
Company news Mirvac Group
(ASX:MGR) is reportedly considering a $7 billion merger proposal with Australand Property Group
(ASX:ALZ) to establish one of the largest diversified real estate investment trusts in Australia. Fairfax Media says Mirvac’s new CEO Susan Lloyd-Hurwitz is considering the option with advisers at Citigroup though the process remains at an early stage. The speculation comes after Australand received a $3 billion unsolicited bid for its commercial and industrial businesses from GPT Group
(ASX:GPT) at the end of last week. Shares in Mirvac Group closed steady on Monday at $1.51.
Shares in PMP Limited
(ASX:PMP) gained yesterday after announcing it has retained its print contract with supermarket giant Woolworths Limited
(ASX:WOW). The printing and distribution business says Woolies has indicated PMP retained the printing of Woolworth national catalogues subject to the supply agreement being finalised. Woolworth's printing contract is understood to be one of the biggest print contracts in Australia and has been maintained by PMP for about a decade. Shares in PMP gained 9.68 per cent on Monday to close at $0.17.
Ex-dividends today
Amadeus Energy Limited
(ASX:AMU) with a 2 cent unfranked dividend
Ex-dividends this week
Singapore Telecommunications Limited
(ASX:SGT) with a 6.8 cent unfranked dividend
G8 Education Limited
(ASX:GEM) with a 2 cent fully franked dividend
Thorn Group Limited
(ASX:TGA) with a 4.5 cent fully franked dividend
Ardent Leisure Group
(ASX:AAD) with a 6.6 cent unfranked dividend
Australian Infrastructure Fund Limited
(ASX:AIX) with a 5.5 cent fully franked dividend
Australand Property Group
(ASX:ALZ) with an 11 cent unfranked dividend
Commodities
Gold is up $1.20 to $US1,698 an ounce for the February contract on Comex.
Silver is down $0.02 to $32.28 for March.
Copper is down $0.02 at $3.67 a pound.
Oil is up $0.47 at $US87.20 a barrel for January light crude in New York.
