The Australian share market is pointing towards a higher open despite US stocks falling, once again impacted by the imminent deadline for averting the looming fiscal cliff, as local investors retain optimism that a deal can be reached and avert a potential recession for the world’s biggest economy. The local market should be shielded somewhat by strength in the Japanese market and light trading volumes ahead of the New Year.
US economic news
Consumer confidence fell in December, reaching its lowest level since August, weighed down- unsurprisingly- by uncertainty about the ‘fiscal cliff’ crisis. The monthly index sagged to 65.1 in December, from 71.5 in November. Analyst expectations had pegged a December result of 70.
Figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 18 points to close at 13,096, the S&P500 dropped 2 to close at 1,418 and the Nasdaq shed 4 points to close at 2,986.
European markets closed up: London’s FTSE gained 0.12 points, Paris gained 22 and Frankfurt added 20 points.
Asian markets closed the day mixed: Hong Kong’s Hang Seng added 79 points, Tokyo’s Nikkei added 93 and China’s Shanghai Composite dropped 13 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 13 points higher to finish at 4,648. On the futures market the SPI is 9 points higher.
Currencies
The Australian Dollar at 8:30AM was buying $US1.038 cents, 64.49 Pence Sterling, 89.35 Yen and 78.43 Euro cents.
Company news
Caltex Australia Limited ( ASX:CTX) chief Julian Segal believes the oil refiner has an image problem to overcome at a time when local refineries are under pressure by large Asian rivals. According to News Corp reports Mr Segal said that according to perception, Caltex has two refineries and a couple of petrol stations, whereas the company is really about the sourcing of product , distribution of product and supply to the customer.
Shares in Caltex closed 0.79 per cent higher yesterday at $19.15.
Cockatoo Coal Limited (ASX:COK) has extended a $100 million loan with a Korean lender to help ease its current funding issues. The coal miner is also in talks with a Japanese trading house to offload a stake in coal deposits within its Baralba mine in Queensland, to be developed as part of a proposed $413 million expansion at the site. Shares in Cockatoo Coal closed flat yesterday at $0.115.
Ex-dividends
No companies are going ex-dividend today but on Monday, computer distributor Dicker Data Limited ( ASX:DDR) will pay a 1 cent dividend, fully franked.
Commodities
Gold is up $1.00 to $US1,664 an ounce for the February contract on Comex. Silver is up $0.21 to $30.24 for March. Copper is up $0.01 at $3.60 a pound. Oil is up $0.17 at US$91.04 a barrel for February light crude in New York.
