The Australian share market is set to climb in early trade, after Wall Street closed higher for the first time this year on a strong November trade report showing the US deficit was at its narrowest point in four years.
US economic news
According to the report, exports rose 0.9 per cent in November and imports fell by 1.4 per cent to leave the trade gap at its lowest level since October 2009.
US stocks were also no doubt boosted after Janet Yellen made history as the US Senate confirmed her to be the first woman to lead the Federal Reserve in its 100-year history.
Currencies
The Australian dollar held its own as optimism returned to markets helped by that positive economic news from the US as well as Europe. At 8:20AM the Aussie was buying $US89.24 cents, 54.42 Pence Sterling, 93.3 Yen and 65.56 Euro cents.
Figures
Wall Street had its first solid day of trade this year: The Dow Jones Industrial Average gained 106 points to close at 16,531, the S&P 500 added 11 points to close at 1,838 and the NASDAQ lifted 40 points to close at 4,153.
European stock markets advanced on brighter eurozone economic data and as Ireland successfully tapped the bond markets for the first time since exiting its EU-IMF bailout and Germany’s unemployment rate appeared to stabilise. London’s FTSE added 25 points, Paris jumped by 35 points and Frankfurt surged by 78 points.
Asian markets were mixed: Tokyo’s Nikkei dropped 95 points, Hong Kong’s Hang Seng added 29 points, and China’s Shanghai Composite gained 2 points.
The Australian share market finished yesterday’s soft session of trade almost where it started. The S&P/ASX 200 index ended the session 8 points down at 5,317. On the futures market the SPI is 25 points higher.
Economic news
The Australian Bureau of Statistics will release job vacancy numbers for the November quarter and AiG will issue its Perfomance of Construction Index for December.
Company news
Analysts say Telstra Corporation Limited
(ASX:TLS) is unlikely to deliver much of its surplus cash to shareholders until after a new agreement is reached with NBN Co. The telco has built a war chest after the $2.7 billion sale of its Hong Kong mobile group CSL last month but hopes for a special dividend or buyback are likely to fall flat. Shares in Telstra lifted 0.19 per cent yesterday to close at $5.28.
Goodman Fielder Limited
(ASX:GFF) will sell its New Zealand meat and pizza businesses, raising net proceeds of between $14 million and $15.8 million, which would be used to reduce net debt. The company says it will sell its meat business to Hellers while Mommas Frozen Products had agreed to purchase its Pizza business. Both buyers are New Zealand companies. Shares in Goodman Fielder dropped 0.75 per cent yesterday to close at 66.5 cents.
Commodities
Gold is down $8.40 to $US1,230 an ounce for the February contract on Comex. Silver is down $0.31 to $19.79 for March. Copper is flat at $3.36 a pound. Oil is up $0.24 at US$93.67 a barrel for February light crude in New York.
