A modest gain is expected for local stocks today despite a weaker mixed finish for US markets on Friday. Wall Street had a generally positive week as President Joe Biden was inaugurated and earnings season kicking. Stocks were up 1.25 per cent for the week. In terms of a catalyst this week it’s a pretty big week ahead in terms of earnings with the likes of Tesla Apple and Facebook reporting. Back home at the market could be taking cues this week from overseas economic data with European and US PMI data due as well as US GDP data as well as a Fed meeting. Consensus is that earnings of US companies that have reported thus far have largely exceeded expectations.
Today the ABS releases preliminary international trade data for December. On Wednesday, the ABS issues the Consumer Price Index for the December quarter and CommSec releases the quarterly State of the States report. On Thursday, the ABS issues the international trade price indexes as well as more detail of the December labour market results including regional estimates of unemployment. On Friday, the ABS issues the December quarter measures of business price inflation.
Wall Street closed mixed on Friday: The Dow Jones Industrial Average lost 0.6 per cent to close at 30 997, the S&P 500 dropped 0.3 per cent to close at 3841 and the NASDAQ closed 0.1 per cent higher at 13,543.
European markets closed lower on Friday: London’s FTSE lost 0.3 per cent, Paris shed 0.6 per cent and Frankfurt closed 0.2 per cent lower.
Asian markets closed lower on Friday: Tokyo’s Nikkei fell 0.4 per cent, Hong Kong’s Hang Seng lost 1.6 per cent and China’s Shanghai Composite lost 0.4 per cent.
SPI futures are pointing to a rise of 15 points on Friday the local market closed 23 points lower at 6800.
Gold producer Silver Lake resources says it’s well placed to deliver its FY21 guidance. The company says the December quarter delivered a steady production and sales result as activity and investment in transformational growth projects in the Deflector region began to ramp up. (Group production was 58,858 ounces gold equivalent with sales of 59,824 ounces gold and 492 tonnes of copper at a realised gold price of A$2,336/oz and an AISC of A$1,592/oz.) Shares in Silver Lake Resources closed 1.8 per cent lower at $1.68 on Friday.
One Australian Dollar at 7:45 AM was buying 77.77 US cents, 56.62 Pence Sterling, 80.11 Yen and 63.42 Euro cents.
Iron Ore futures suggest a fall 0.8 per cent gain.
Gold lost $9.40 to US$1860 an ounce.
Silver has shed $0.30 to US$25.56 an ounce.
Oil was down $0.86 to US$52.27 a barrel.