The Australian market looks set to continue its Christmas rally in early trade, after US stocks soared following an announcement that Apple Inc signed a distribution deal with China Mobile.
Volume is expected to be thin this week, with many traders taking a breather for the Christmas holiday. However that light volume may amplify global market volatility.
US economic news
The latest US economic data showed that consumer sentiment rose to its strongest level in five months in December as Americans' outlook on the economy and employment improved.
November personal income rose 0.2 percent while spending rose 0.5 percent, according to a Commerce Department report.
Figures
Wall Street traders got in to the festive spirit as tech titan Apple announced it had signed a long-awaited agreement with China Mobile Ltd to sell iPhones through the world's biggest network of mobile phone users. It’s a deal that could add billions of dollars to its revenue.The Dow Jones Industrial Average gained 73 points to close at 16,295, the S&P 500 added 10 points to close at 1,828 and the NASDAQ soared 44 points to close at 4,149.
European markets followed suit: London’s FTSE lifted by 72 points, Paris added 22 points and Frankfurt jumped by 89 points.
Asian markets were also in positive territory: Tokyo’s Nikkei added 11 points, Hong Kong’s Hang Seng surged by 109 points, and China’s Shanghai Composite added 5 points.
The Australian share market cruised 0.5 per cent higher yesterday on the back of better than expected US growth figures. The S&P/ASX 200 index gained 27 points by session’s end to finish at 5,292. On the futures market the SPI is 27 points up.
Currencies
The Australian Dollar at 8:20AM was buying $US89.38 cents, 54.67 Pence Sterling, 93.08 Yen and 65.28 Euro cents.
Company news
Shell may sell up to $US30 billion of assets next year and its $US7 billion stake in Woodside Petroleum Limited
(ASX:WPL) could be up for grabs. The oil giant has announced it is entering a divestment phase after weak refining margins and oil theft in Nigeria caused a sharp fall in profits. Shares in Woodside gained 0.8 per cent yesterday to close at $38.90.
Echo Entertainment Group’s Limited
(ASX:EGP) will lose its managing director of Sydney casino The Star, after he resigned to take a job overseas. Frederic Luvisutto will remain with The Star until January 24, and Echo's chief executive John Redmond will oversee the casino's management while a replacement is found. Shares in Echo Entertainment lifted 6.09 per cent yesterday to close at $2.44.
Commodities
Gold is down $6.70 to $US1,197 an ounce for the February contract on Comex. Silver is down $0.04 to $19.41 for March. Copper is flat at $3.31 a pound. Oil is down $0.41 at US$98.91 a barrel for January light crude in New York.
