News: Outlook: ASX set for a soft open

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US markets have provided the local bourse with a weak positive lead however a 1.6 per cent plunge in the iron ore price could see the ASX open slightly lower. The Australian dollar saw some roller coaster activity overnight, dropping as low as 84.80US cents before disappointing economic news in the US drove the greenback lower. 
 

US economic news

The Commerce Department said consumer spending, a huge driver of the US economy, was up just 0.2 per cent in October after a flat reading in September. In a separate report, non-defense capital goods orders excluding aircraft fell 1.3 per cent last month. 

Markets

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.07 per cent to close at 17,828, the S&P 500 added 0.3 per cent to close at 2,073 and the NASDAQ added 0.6 per cent to close at 4,787.

 

European markets closed mixed: London’s FTSE dipped 0.03 per cent, Paris lost 0.2 per cent and Frankfurt firmed 0.6 per cent.

 

Asian markets closed also mixed: Tokyo’s Nikkei slipped 0.1 per cent, Hong Kong’s Hang Seng added 1.1 per cent, and China’s Shanghai Composite advanced 1.4 per cent.

 

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 61 points up to finish at 5,396. On the futures market the SPI is flat. 

 

Turning to currencies and the Australian Dollar at 8.35AM was buying US85.52 cents, 54.16 Pence Sterling, 100.68 Yen and 68.39 Euro cents.

 

Australian economic news

Due out today are new home sales from Housing Industry Association are new home sales for October as well as ABS private new capital expenditure and the CBA business sales indicator for October. 

 

Company news

Dual-listed New Zealand insurance company Tower Limited (ASX:TWR) (NZX:TWR) has posted a 32 per cent rise in full year underlying general insurance profit to $25.1 million and announced intentions of a on-market buyback. The company has recently divested health, life and investments business to focus on general insurance and recorded a 79 per cent jump in underlying profit from its Pacific business. Premiums were up close to 7 per cent and the company says it will commence a $34 million on market buyback in the first quarter of 2015. Shares in Tower Limited added 0.56 per cent to $1.79. 

 

Another New Zealand based company Gentrack Group Limited (ASX:GTK) says it has produced a better-than-expected full year profit of NZ$3.4 million. The result was still below prospectus forecasts of a profit of $3.7 million with revenue coming in at NZ$38.5 million, also below the expectations of NZ$40.6 million. The result is however an improvement on the profit downgrade issue on August 1. The airport and utilities software supplier is promising strong growth in 2015 with forecasts of a 16 per cent rise in revenue should the company win several promising projects in the pipeline. Shares in Gentrack Group Limited (ASX:GTK) closed flat yesterday at $1.98.  

 

 

Ex-dividends

2 companies are going ex-dividend today: Aurora Dividend Income (ASX:AOD) will pay 48 cents fully franked and Victor Group Holdings will pay 48 cents with no franking. 

 

 

Commodities

Gold is down $0.50 to $US1,197 an ounce for the December contract on Comex. Silver is down $0.01 to $16.55 for December. Copper is up .3 cents at $2.96 a pound. Oil is down $0.40 at US$73.69 a barrel for January light crude in New York.