Outlook: Aus shares set for a flat open

Market Reports

The Australian share market is tipped to open relatively flat today, after US stocks drifted from early-session highs amid investor concerns the US Federal Reserve will pull back on stimulus soon.  Wall Street pared gains after Federal Reserve Bank of St Louis President James Bullard said the latest strong labour market figures increased the probability the central bank will begin to taper over coming months. However, there was no indication a reduction would begin this month.

Currencies
 
The Australian dollar pushed higher amid recent solid data from the US and China and a more optimistic global economic outlook. At 8:40AM the Aussie was buying $US91.14 cents, 55.49 Pence Sterling, 94.12 Yen and 66.34 Euro cents.
 
Figures

Wall Street had a subdued session but remained in positive territory: The Dow Jones Industrial Average gained 5 points to close at 16,026, the S&P 500 added 3 points to close at 1,808 and the NASDAQ lifted by 6 points to close at 4,069.
 
European markets followed suit as traders focused on the outlook for the US and digested data from the eurozone's biggest economies, Germany - where industrial output faltered - and France, which saw minimal economic growth.  London’s FTSE added 7 points, Paris lifted by 5 points and Frankfurt gained 23 points.
 
Asian markets were mostly higher. Japan's Nikkei climbed 2.3 percent overnight, its best one-day gain in three months, spurred by a slide in the yen. Tokyo’s Nikkei added 350 points, Hong Kong’s Hang Seng added 68 points, and China’s Shanghai Composite added 1 point.
 
The Australian share market closed 0.8 per cent down, after investor sentiment was hit by a brutal plunge from insurer QBE on another profit downgrade, which saw the financials sector fall 1.4 per cent. The S&P/ASX 200 index closed 42 points down to finish at 5,144. On the futures market the SPI is 2 points lower. 
 
Economic news

The Australian Bureau of Statistics will release October housing finance data today. Economists are tipping a 1 per cent lift in the number of loans. And the National Australia Bank’s November survey of business confidence and conditions is also due out today.
 
In offshore news expected today - China’s November industrial production data will go to print, along with November retail sales.
 
Company news
 
Woolworths Limited (ASX:WOW) is putting pressure on Aldi after the German grocer opted against signing the grocery code of conduct, according to media reports. The move by Aldi has prompted questions from senior management at Woolworths, which claims Aldi had complained about the lack of a level playing field in the sector. Shares in Woolworths fell 0.33 per cent yesterday to close at $32.90.
 
National Australia Bank Limited (ASX:NAB) has promoted the head of its SME business, Daryl Johnson, to the role of CEO Asia. Media reports say Mr Johnson will replace Spiro Pappas, who will return to Australia to take up the role of executive general manager of institutional banking, financial institutions and international. Shares in NAB dropped 0.9 per cent yesterday to close at $33.17.
 
In other equities news to watch today, former Brambles Limited (ASX:BXB) division Recall is expected to list on the ASX, Woodside Petroleum Limited (ASX:WPL) has an investor update scheduled and Billabong International Limited (ASX:BBG) will hold its annual general meeting on the Gold Coast.
 
Commodities

Gold is up $5.20 to $US1,234 an ounce for the February contract on Comex. Silver is up $0.17 to $19.70 for March. Copper is up $0.01 at $3.26 a pound. Oil is down $0.31 at US$97.34 a barrel for January light crude in New York.

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