The Australian share market looks to lift into the last day of the week after returning from two public holidays. Any holiday hangovers will be cast aside as stocks get set to continue a rally sparked by the US Federal Reserve’s decided to wind back its economic stimulus program earlier this month.
While many global markets remained closed yesterday Wall Street’s benchmark stock indices extended all-time highs. US investors returned from the Christmas holiday break on Thursday and though volumes were light the Dow Jones Industrial Average and S&P 500 lodged record closing highs.
On the local front no economic news is scheduled for release and trading volumes are likely to remain in holiday mode as the weekend nears.
US economic news
Initial claims for unemployment benefits dropped more than expected last week, suggesting the US job market could be strengthening. The Labor Department reported initial jobless claims fell 42,000 to a seasonally adjusted 338,000 for the week ending on December 21, 2013.
Market movements
Wall Street continued to head higher post Christmas: On Thursday the Dow Jones Industrial Average advanced 122 points to end at a record closing high of 16,480, the S&P 500 advanced 9 points to end at a record closing high of 1,842 and the NASDAQ advanced 12 points to close at a new 13-year high of 4,167.
European markets remained closed yesterday with traders still on holidays following Christmas: Recapping Christmas Eve numbers London’s FTSE gained 16 points, Paris gained 3 points and Frankfurt gained 89 points.
Asian markets were mixed yesterday: Tokyo’s Nikkei rose 164 points on Thursday, Hong Kong’s Hang Seng gained 258 points on Tuesday, and China’s Shanghai Composite fell 33 points on Thursday.
The Australian share market continued its Santa rally momentum on Christmas Eve, climbing 0.7 per cent to session highs: The S&P/ASX 200 Index rose 35 points on Tuesday to end the shortened trading session at 5,327. On the futures market the SPI is 47 points stronger.
Currencies
The Australian Dollar at 8:25AM was buying $US0.8899 cents, 54.24 Pence Sterling, 93.24 Yen and 65.01 Euro cents.
Company news
Myer Holdings Limited
(ASX:MYR) was dealt a blow yesterday as one of the biggest days of shopping in Australia got fired up. As shoppers took to the street and online for the Boxing Day public holiday the department store retailer’s site crashed and is still experiencing difficulties. Myer has apologised that its site is still unavailable and says its working on getting its online service back up & running. Meanwhile the Australian National Retailers Association forecast Boxing Day spending in Australia will grow 5.5 per cent from last year to hit $1.9 billion. Shares in Myer Holdings rose 1.87 per cent to close at $2.73 on Christmas Eve and ahead of Boxing Day.
Crown Resorts Limited’s
(ASX:CWN) chief James Packer should have had a Merry Christmas with gains in equity markets helping to boost his fortunes this year. Mr Packer has seen his net worth climb from about $6.0 billion in May to $7.2 billion in the same period the Barangaroo development in Sydney was given the green light to proceed. The company’s stock has also put in a solid performance in 2013, rising almost 60 per cent over the year. Shares in Crown Resorts gained 1.38 per cent to close at $16.89 on Christmas Eve.
Dividends today
Metcash Limited
(ASX:MTS) paying a 9.5 cent fully franked dividend
Dividends next week
Dicker Data Limited
(ASX:DDR) paying a 1 cent fully franked dividend
Clime Capital
(ASX:CAM) paying a 1 cent fully franked dividend
Programmed Maintenance Services Limited
(ASX:PRG) paying a 6 cent fully franked dividend
Commodities
Gold has risen $9.00 to $US1,212 an ounce for the February contract on Comex.
Silver has put on $0.43 to $19.92 for March.
Copper has lifted $0.02 at $3.40 a pound.
Oil has firmed $0.33 to a two month high of US$99.55 a barrel for January light crude in New York.
