Heffo’s Asian Pre Market
No clear direction from US or European markets will leave us with a flat start across Asia, Metals and oil both had better days so there may be some uptick in the mining sector early. I added to my long HSI positions agian today but the pending Chinese New year break will weigh on many of the regions markets, the New Year has traditionally seen a good rally so i am aiming at holding till then.
The Australian stock market has received a mixed set of leads from overseas markets, with Wall Street’s main indices themselves mixed but oil and metals prices higher.
This morning on the Sydney Futures Exchange, the March share price index contract was eight points lower at 4465. Yesterday, the major indices rose marginally, both ending about 0.15 per cent higher.
What you need to know
The SPI was 8 points lower at 4465
The Australian dollar was buying 86.85 US cents
In the US, the S&P 500 slipped about half a point to 1065.77
In Europe, the FTSE climbed 31.41 points to 5092.33
Gold rose $US13.40 an ounce to $US1066.20
Oil was up 64 US cents a barrel to $US71.83
The Reuters Jefferies CRB index rose 1.19%
Stocks to watch: possible market movers
What’s out today
In economic news, the National Australia Bank monthly business survey is due, and, late in the day, the Reserve Bank of Australia releases papers scheduled to be delivered at a symposium marking the 50th anniversary of its establishment.
In companies news, Macquarie Group is expected to post an operational update.
Full year results are due from Australand Property Group, Reckon and Alumina, first-half results are scheduled from David Jones, Cochlear, and Bradken and Optus parent Singapore Telecommunications releases third-quarter results.
In the news this morning
Macquarie Group is expected to return to credit markets before the expiry of the funding guarantee, to try to roll over more than $2 billion of funds.
Even the experts cannot agree on whether the world’s jittery sharemarkets are having a hiccup or a heart attack.
APRA has stepped up warnings to superannuation industry over money being illegally taken from super accounts.
Overseas, worries about sovereign debt in the eurozone continue to eat into what had been growing confidence about a global economic recovery. And that comes as Italians spent a record amount on financial advice – from fortune tellers.
Plus, Ian Verrender on the ACCC’s role in the future of AXA Asia Pacific, Adele Ferguson on the wholesale funding guarantee, Penny Stevens on workplace fines for bullies and Adam Schwab says CEOs aren’t superstars just ordinary – albeit overpaid – employees.
How we fared yesterday
The Australian share market closed marginally higher ahead of key earnings reports by heavyweights BHP Billiton, Rio Tinto and Commonwealth Bank of Australia later in the week.
The benchmark S&P/ASX200 index ended up 7.3 points, or 0.16 per cent, at 4521.4, while the broader All Ordinaries index finished 6.3 points higher, by 0.14 per cent, at 4538.8.
Offshore overnight
US stocks were lower on Monday but trading in a tight range as investors remained wary about the strength of the economic recovery and mounting sovereign debt in Europe.
US stocks have traded erratically in the past four weeks as investors pondered over the sustainability of the global economic recovery.
Concerns have grown that some European countries — Greece, Portugal and Spain — may not be able to handle their mounting levels of debt.
Stocks have also been hurt by China’s plans to contain economic growth and the Obama administration’s proposed rules to restrict trading by large financial institutions.
In late afternoon trade, US time, the Dow Jones Industrial Average was down 24.56 points, or 0.25 per cent, at 9987.67 points.
The broad-market Standard & Poor’s 500 index was down 0.42 point, or 0.04 per cent at 1065.77 points.
The Nasdaq composite was down 2.02 points, or 0.1 per cent, at 2139.1 points.
European stocks closed higher in choppy trading after sharp falls last week brought on by mounting fears over the ability of European governments to cope with rising debt.
The benchmark FTSE 100 index rose 31.41 points, or 0.62 per cent to end at 5092.33 points.
The German DAX 30 gained 50.51 points, or 0.93 per cent to close at 5484.85 points and in France, the CAC 40 climbed 43.51 points, or 1.22 per cent to 3607.27 points.
Commodities
Oil and other energy prices climbed as another winter storm was expected to dump even more snow on the US east coast and lift demand for energy commodities.
On the New York Mercantile Exchange, New York’s main futures contract, light sweet crude for delivery in March, was 63 US cents higher at $US71.82 a barrel.
Parts of Virginia, Maryland, Pennsylvania and Washington have been blanketed in about a metre of snow, knocking out power for tens of thousands of Americans and forcing government offices to close.
As those regions dig out, analysts said they expected to see sizable draws on the US’s supply of natural gas and heating oil.
Mid-Atlantic states are some of the biggest natural gas and heating oil consumers in the US.
Oil, heating oil and gasoline prices increased in response.
London’s Brent North Sea crude for March gained 61 US cents to $US70.20 a barrel.
Gold for April delivery rose $US13.40 to settle at $US1066.20 a fine ounce.
March silver rose 25.5 US cents to $US15.085 an ounce. Copper for March delivery rose 5.55 US cents to $US2.9130 a pound.
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