Outlook: Aus shares set to open 2013 higher

Market Reports

The Australian share market looks set to open 2013 in positive territory on the back of a strong finish on Wall Street after the US senate passed legislation that will see the world’s biggest economy avoid falling into recession.

Figures

Wall Street closed HIGHER yesterday: The Dow Jones Industrial Average gained 166 points to close at 13,104, the S&P500 added 24 points to close at 1,426 and the Nasdaq went up by 59 points to close at 3,020.

European markets closed mixed: London’s FTSE lost 28 points, Paris gained 21 points and Frankfurt lost 43 points.

Asian markets also closed mixed: Hong Kong’s Hang Seng dropped 10 points, Tokyo’s Nikkei added 72 and China’s Shanghai Composite gained 36 points.

The Australian share market closed lower on New Year’s Eve: The S&P/ASX 200 Index closed 22 points down to finish at 4,649. On the futures market the SPI is 30 points down.

Currencies

The Australian Dollar at 8:40AM was buying $US1.039 cents, 64.07 Pence Sterling, 90.17 Yen and 78.81 Euro cents.

Economic news

Due out today from the The Australian Industry Group is their performance of manufacturing (PMI) index for December, and the Reserve Bank of Australia (RBA) will deliver its index of commodity prices for month just ended.

Company news

BlueScope Steel Limited (ASX:BSL) is reportedly set to embark on the construction of a Direct Reduction Iron plant in Ohio as part of its Joint Venture with international commodity trader Cargill. According to Fairfax reports, Blue Scope is but one of several international steel makers seeking to invest in the US shale gas revolution. DRI technology is significantly cheaper than blast furnacing in the production of iron. Shares in Blue Scope Steel closed 0.86 per cent lower on New Year’s Eve at $3.45. 

Metals X Limited (ASX:MLX) shareholder Guinness Peat Group (ASX:GPG) has divested its holding in the company. The divestment comes amid a catalogue of others, valued at a total of $15.4 million, as GPG Group overhauls its investment portfolio. Shares in Metals X closed 3.33 per cent lower on New Year’s Eve at $0.145.

Ex-dividends

None today but tomorrow Property and Infrastructure services company Programmed Maintenance Services Limited ( ASX:PRG) will pay shareholders a 5 cent fully franked dividend.

Commodities

Gold is up $3.70 to $US1,676 an ounce for the February contract on Comex. Silver is down $0.02 to $30.23 for March. Copper is up $0.02 at $3.65 a pound. Oil is up $1.02 at US$98.82 a barrel for February light crude in New York.


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