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Buoyed by positive leads the Australian share market is poised to break its losing streak. Wall Street gained more than 1 per cent on the back of hopes for more stimulus in Europe and upbeat local economic data. America’s trade gap was shown to have narrowed in November while US private sector hiring sped-up last month. The US Federal Reserve also released its meeting minutes which affirmed its patient approach to lifting rates.
Global markets
Wall Street snapped a run of losses on Wednesday: The Dow Jones Industrial Average advanced 1.2 per cent to close at 17,585, the S&P 500 advanced 1.2 per cent to close at 2,026 and the Nasdaq advanced 1.3 per cent to close at 4,650.
European markets reversed direction to move higher yesterday: London's FTSE 100 gained 0.8 per cent, France's CAC 40 gained 0.7 per cent and Germany's DAX gained 0.5 per cent.
Asian markets ended higher on Wednesday: Japan’s Nikkei added 0.01 per cent, Hong Kong’s Hang Seng added 0.8 per cent, and China’s Shanghai Composite added 0.7 per cent.
Following Tuesday’s steep declines the Australian share market stayed in the red on Wednesday: The S&P/ASX 200 index finished 11 points lower yesterday at 5,354. On the futures market the SPI is 25 points higher.
Currencies
The Australian dollar at 8:20am was buying $US0.807, 53.43 Pence Sterling, 96.15 Yen and 68.19 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Building approvals data for November
Company news
Westpac Banking Corporation’s (ASX:WBC) South Australian focused BankSA has extended its support to communities impacted by bushfires in the state. The support package will include a donation of $50,000 to the State Emergency Relief Fund. Up to $100,000 will also be made available to support local re-building and recovery efforts in affected Adelaide Hills’ communities. Earlier this week Westpac announced a disaster relief package for South Australia along with the other Big Four Banks and Telstra Corporation Limited (ASX:TLS). Shares in Westpac Banking Corporation fell 0.55 per cent on Wednesday to close at $32.69.
In the wake of the plunging oil price concerns are mounting over Santos Limited (ASX:STO). Credit Suisse equity analysts claim the oil and gas producer’s stock is worthless if the current price of oil and exchange rates continue. The investment bank’s hypothetical analysis found the company has a negative net present value of -13 cents with oil prices at $US55.20 a barrel and an exchange rate at $US0.806. Shares in Santos fell 1.32 per cent on Wednesday to close at $7.45.
Ex-dividends
Aberdeen Leaders Limited (ASX:ALR) paying a 1 cent fully franked dividend
Commodities
Gold has dropped $7.10 to $US1,212 an ounce for the February contract on Comex.
Silver has fallen $0.09 to $16.55 for March.
Copper is steady at $2.76 a pound.
Oil has lifted $0.88 to $US48.81 a barrel for February light crude in New York.
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