The Australian share market is set for a moderate start to the day after global markets posted modest gains and commodity prices softened at the end of last week.
US economic news
The trade balance in November has widened, despite analysts tipping a reduction. The trade deficit expanded to $48.7 billion from $42.1 billion in October. Exports rebounded 1 percent, following a 3.5 percent drop in October. Imports rose 3.8 percent in November, following a 2.1 percent decline the previous month.
Figures
Wall Street closed mixed on Friday: The Dow Jones Industrial Average gained 17 points to close at 13,488, the S&P500 lost 0.1 of a point to close at 1,472 and the Nasdaq added 4 points to close at 3,126.
European markets closed up: London’s FTSE gained 20 points, Paris was up by 3 and Frankfurt added 7 points.
Asian markets closed mixed: Hong Kong’s Hang Seng lost 90 points, Tokyo’s Nikkei added 149 and China’s Shanghai Composite lost 41 points.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 13 points down to finish at 4,710 and 14 points lower over the week. On the futures market the SPI is 8 points higher.
Currencies
The Australian Dollar at 8:30AM was buying $US1.054, 65.41 Pence Sterling, 94.2 Yen and 78.96 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is home loans and investment lending for November. ANZ job ads for December will also be realeased. TD Securities will report on December’s inflation gauge.
Company news
BHP Billiton Limited’s
(ASX:BHP) has reportedly spoken out against the Papua New Guinea government’s treatment of Ok Tedi Mining’s Chairman Ross Garnaut. The Australian economist was issued with an immigration ban that ultimately led to his resignation. According to Fairfax Media, BHP has accused Prime Minister Peter O’Neill of improperly issuing exploration licences in exchange for control of a $1.4 billion development fund that was established with OK Tedi funds, as well as threatening to block BHP’s lease applications if rights were not transferred to the government. Shares in BHP Billiton closed 1.95 per cent down on Friday at $36.68.
Macmahon Holdings Limited’s
(ASX:MAH) suitor Sembawang has walked away from its offer to acquire Macmahon’s construction assets accusing the Perth based company of failing to meet its deadline to accept its revised offer. The Singapore based company revised its offer last week in an attempt to snatch the business from MacMahon’s biggest shareholder Leighton Holdings Limited
(ASX:LEI) who has agreed to buy the construction arm for $20 million. The offer is subject to an extraordinary general meeting next month.Shares in Macmahon Holdings closed 7.14 per cent down on Friday at $0.26.
Commodities
Gold is down $17.90 to $US1,661 an ounce for the February contract on Comex. Silver is down $0.51 to $30.41 for March. Copper is down $0.04 at $3.65 a pound. Oil is down $0.26 at US$93.56 a barrel for February light crude in New York.
