The Australian share market is tipped to lift at the open, after US stocks closed at fresh highs following stronger-than-expected third-quarter GDP growth.
US economic news
Analysts say investors were cheered after the US Commerce Department raised its estimate for third-quarter gross domestic product growth to an annual rate of 4.1 per cent, from 3.6 per cent.
Traders in the US say while GDP growth suggests solid growth, it was not so strong that it would undermine the Federal Reserve's strategy of keeping interest rates low and tapering its bond-purchase program.
Currencies
The Australian dollar has edged higher in quiet trade, despite predictions it will continue to fall in the wake of the US Federal Reserve decision to begin tapering its bond buying program.At 7:20AM the Aussie was buying $US89.29 cents, 54.66 Pence Sterling, 92.84 Yen and 65.32 Euro cents.
Figures
Wall Street was buoyant throughout the US Friday session: The Dow Jones Industrial Average jumped 42 points to close at 16,221, the S&P500 added 9 points to close at 1,818 and the Nasdaq rose by 47 points to close at 4,105.
European markets followed suit: London’s FTSE gained 22 points, Paris lifted by 17 points and Frankfurt rose by 64 points.
Asian markets were mixed: Tokyo’s Nikkei added 11 points, Hong Kong’s Hang Seng dropped 77 points, and China’s Shanghai Composite shed 43 points.
The Australian share market spiked over 1 per cent higher on Friday and 3.3 per cent stronger over the week. The S&P/ASX 200 index climbed 63 points on Friday, widening the weekly gain of 178 points to finish at 5,265. On the futures market the SPI is 11 points up.
Company news
Warrnambool Cheese & Butter Factory Co
(ASX:WCB) expects to double its half-year earnings in fiscal 2014, citing improved market conditions and strategic focus. The Victorian dairy company says it expects EBITDA to come in at $29.3 million in the six months to December 31 – a 100 per cent increase on the previous corresponding period. Shares in Warrnambool Cheese and Butter Factory lifted 0.65 per cent on Friday to close at $9.25.
CO2 Group’s Limited
(ASX:COZ) agribusiness unit, Western Australian Resources Ltd, is seeking to raise $400 million by June next year to develop a 2,000 hectare prawn farm in northern Australia. The company has already spent $10 million on feasibility studies on developing prawn farms and now says it will pay $11.2 million to acquire Seafarm Ltd, the oldest and largest prawn farm in Australia. Shares in CO2 jumped 3.45 per cent on Friday to close at 6 cents.
Commodities
Gold is up $10.10 to $US1,204 an ounce for the February contract on Comex. Silver is up $0.27 to $19.45 for March. Copper is up $0.01 at $3.30 a pound. Oil is up $0.28 at US$99.32 a barrel for January light crude in New York.
Ex dividend
Aurora Sandringham Dividend Income Trust
(ASX:AOD) Aurora Property Buy-Write Income Trust
(ASX:AUP) Australian Social Infrastructure Fund
(ASX:AZF) Challenger Diversified Property Group
(ASX:CDI) Growthpoint Properties Australia Ltd
(ASX:GOZ) Australian Leisure & Entrtmt Pty Mgt Ltd
(ASX:LEP) Shopping Cntrs Austrls Prprty Gp Re Ltd
(ASX:SCP) US Masters Residential Property Fund
(ASX:URF)
