Strong US and European leads look to boost the Australian share market this morning ahead of China’s fourth quarter growth figures, industrial production, fixed asset investment and retail sales data due for release this afternoon. Overnight, US stocks rose and the Dow Jones Industrial Average edged to a five-year high as positive economic reports offset mixed earnings results.
US economic news
American housing starts rebounded last month: The Census Bureau reported construction came in at an annual pace of 954,000 homes in December, up 12 per cent from the month before and 37 per cent from the year before.
Unemployment benefits dropped to a five year low last week: The Labor Department reported first-time claims for unemployment benefits fell by 37,000 to 335,000 last week.
Figures
Wall Street rallied on Thursday: The Dow Jones Industrial Average lifted 85 points to close at 13,596, the S&P500 lifted 8 points to close at 1,481 and the Nasdaq lifted 18 points to close at 3,136.
European markets also finished higher on Thursday: London’s FTSE added 28 points, Paris added 36 points and Frankfurt added 44 points.
Asian markets closed mixed on Thursday: Hong Kong’s Hang Seng lost 17 points, Tokyo’s Nikkei added 9 and China’s Shanghai Composite lost 25 points.
The Australian share market traded in positive territory yesterday, ending 0.4 per cent higher: The S&P/ASX 200 Index rose 18 points to finish at 4,757. On the futures market the SPI is 34 points stronger.
Currencies
The Australian Dollar at 8:25AM was buying $US1.054 cents, 65.94 Pence Sterling, 94.83 Yen and 78.85 Euro cents.
Company news Qantas Airways Limited
(ASX:QAN) has welcomed a decision by Fair Work Commission in a case that has seen the International Pilots Association lose a job security claim.
Australia’s largest airline will now have until February to finalise a new enterprise bargaining agreement with the pilot’s union. The announcement came on the same day Qantas wasg ranted interim authorisation from Australia’s competition regulator for its proposed alliance with Emirates. Shares in Qantas Airways fell 1.3 per cent yesterday to close at $1.52.
Leighton Holdings Limited’s
(ASX:LEI) subsidiary Visionstream has secured a $90 million contract for Telstra Corporation Limited
(ASX:TLS) which could be worth up to $210 million if two options for yearly renewals are exercised.
Under the initial three year contract Visionstream will provide services as part of Telstra’s infrastructure deployment for the National Broadband Network. The work will include Visionstream performing remediation activities of Telstra’s pit and pipe infrastructure in Victoria and Tasmania. Shares in Leighton Holdings dipped 0.73 per cent yesterday, ending at $19.06.
Commodities
Gold is up $7.60 to $US1,691 an ounce for the February contract on Comex.
Silver is up $0.27 to $31.81 for March.
Copper is up $0.06 at $3.66 a pound.
Oil is up $1.25 at US$95.49 a barrel for February light crude in New York.
