The Australian share market looks set pause from recent gains after global markets dipped overnight. US stocks dropped after a soft read on economic growth and following news the US Federal Reserve will maintain its stimulus program by continuing its bond buying program indefinitely.
US economic news
America’s economy unexpectedly contracted in the fourth quarter. The Commerce Department reported US gross domestic product (GDP) shrank at an annual rate of 0.1 per cent in the three months to the end of December 2012, the first contraction since 2009.
Figures
Wall Street closed in the red on Wednesday: The Dow Jones Industrial Average lost 44 points to close at 13,910 the S&P500 lost 6 points to close at 1,502 and the Nasdaq lost 11 points to close at 3,142.
European markets also ended lower on Wednesday: London’s FTSE fell 16 points, Paris fell 20 points and Frankfurt fell 37 points.
Asian markets closed higher on Wednesday: Hong Kong’s Hang Seng added 167 points, Tokyo’s Nikkei added 247 and China’s Shanghai Composite added 24 points.
The Australian share market closed higher for the tenth straight session on Wednesday: The S&P/ASX 200 Index added 8 points to finish at 4,897. On the futures market the SPI is 5 points lower.
Currencies
The Australian Dollar at 8:50AM was buying $US1.042 cents, 65.94 Pence Sterling, 94.91 Yen and 76.8 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International trade prices indexes for December quarter and Private sector credit for December
Reserve Bank of Australia: Financial aggregates for December
Housing Industry Association: New home sales for December
Company news Rio Tinto Limited’s
(ASX:RIO) new CEO Sam Walsh has resigned as a non-executive director of Seven West Media Limited
(ASX:SWM).
Seven West Chairman Kerry Stokes says the company will now actively pursue the appointment of a new independent director to replace Mr Walsh. Shares in Seven West Media fell 1.87 per cent yesterday, closing at $2.10.
Shares in Antisense Therapeutics Limited
(ASX:ANP) surged yesterday after the drug discovery and development company announced it has scored regulatory approval in America.
Antisense’s technology partner Isis Pharmaceuticals has received US Food and Drug Administration (FDA) approval for the KYNAMRO drug. Antisense says KYNAMRO is an antisense drug with the same platform chemistry as those in the company’s pipeline. Antisense Therapeutics surged 23.08 per cent yesterday, closing at $0.016.
Ex-dividends today
Australian Masters Yield Fund Number 1 Limited
(ASX:AYD) with a fully franked dividend of $1.00
Australian Masters Yield Fund Number 2 Limited
(ASX:AYH) with a fully franked dividend of $1.15
Commodities
Gold is up $19.10 to $US1,680 an ounce for the February contract on Comex.
Silver is up $0.99 to $32.18 for March.
Copper is $0.06 higher at $3.75 a pound.
Oil is up $0.37 at US$97.94 a barrel for March light crude in New York.
