The Australian share market is set for a solid start to the week after US stocks powered to new peaks on long-term tailwinds.
Both the Dow and the S&P 500 hit fresh records despite a quiet trading session, amid ongoing support from the Federal Reserve, limited returns on bonds and steady expansion in corporate results.
US economic news
The US economic calendar was light. Manufacturers saw activity expanding this month and hiring bouncing back, according to the Federal Reserve Bank of Kansas City's manufacturing composite index.
Currencies
The Australian dollar dropped below 92 US cents as the greenback pushed higher against the yen and other major currencies. At 7:20AM the Aussie was buying $US91.81 cents, 56.59 Pence Sterling, 93 Yen and 67.77 Euro cents.
Figures
Wall Street lifted to new records: The Dow Jones Industrial Average added 55 points to close at 16,065, the S&P500 gained 9 points to close at 1,805 and the Nasdaq lifted by 23 points to close at 3,992.
European markets gained some ground, with the Stoxx Europe 600 up 0.1 per cent on a higher-than-expected reading on business confidence in Germany. London’s FTSE dropped 7 points, Paris gained 25 points and Frankfurt added 23 points.
Asian markets were mixed: Tokyo’s Nikkei added 16 points, Hong Kong’s Hang Seng surged by 116 points, but China’s Shanghai Composite lost 9 points.
The Australian share market snapped four days of losses and ended the week on a high note on Friday. The S&P/ASX 200 index gained 48 points on Friday, trimming the weekly fall of 66 points to end at 5,336. On the futures market the SPI is 23 points higher.
Company news
Yellow Brick Road Holdings Limited
(ASX:YBR) will hold its annual general meeting today. The wealth management company, founded by Mark Bouris, has analysts tipping it is likely to benefit as the financial industry drives growth in the economy over the next two decades. Shares in YBR were trading steady at 58 cents on Friday.
BHP Billiton’s Limited
(ASX:BHP) outlook on its US shale gas cashflow has improved, with free cashflow over the next few years potentially beating expectations by $US 1 billion, according to media reports. Reports say the jump comes from much-improved expectations for how much oil the company can expect to get from its Texas holdings. Shares in BHP lifted 0.72 per cent on Friday to close at $37.83.
Commodities
Gold is up $0.50 to $US1,244 an ounce for the December contract on Comex. Silver is down $0.07 to $19.86 for December. Copper is up $0.06 at $3.21 a pound. Oil is down $0.60 at US$94.84 a barrel for January light crude in New York.
