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US stock rose on a rally in biotechnology and energy companies providing a positive lead for the Australian share market which looks set to open little changed after yesterdays rebound. More losses in commodities and oil prices overnight could put pressure on stocks today.
US economic news
Data from the Commerce Department showed construction spending grew a more than expected1.1 per cent in October recording its largest gain in 5 months. Automobile sales also came in above estimates with an annual rate of 17.1 million units for November, above analyst expectations for a rise to 16.7 million units.
Figures
Wall Street closed up: The Dow Jones Industrial Average gained 0.6 per cent to close at 17,880, the S&P 500 added 0.6 per cent to close at 2,067 and the NASDAQ advanced 0.6 per cent to close at 4,756.European markets closed mixed: London’s FTSE rose 1.3 per cent, Paris firmed 0.3 per cent and Frankfurt slipped 0.3 per cent.Asian markets closed higher: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng lifted 1.2 per cent, and China’s Shanghai Composite surged 3.1 per cent.The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 74 points up to finish at 5,281. On the futures market the SPI is 3 points up.Currencies
The Australian Dollar at 8.30AM was buying 84.44 US cents, 54.01 Pence Sterling, 100.69 Yen and 68.22 Euro cents.Australian economic news
Due out today from the Australian Bureau of Statistics is national GDP for the June quarter as well as the Performance of Services Index for November
Company news
Japara Healthcare Limited (ASX:JHC) has admitted to owing employees around $5 million in overtime and entitlements. The aged care operator has engaged an external auditor to review payroll records and correctly calculate payments. The majority of the unpaid wages relate to the period prior to Japara’s listing on the ASX so the amount will be treated as a pre-acquisition adjustment. The mix-up has prompted an upgrade of the workforce management system to reduce reliance on manual processing. Japara has confirmed previous earning guidance for 2015. Shares in Japara Healthcare closed 9.82 per cent weaker yesterday at $2.02, just above the listing price.And New Zealand aged care operator and developer Summerset Group Holdings Limited (ASX:SNZ) says it has been given resource consent to build a $74 million retirement village in Wigram, Christchurch. It’s the company’s first village in Christchurch and 20th nationwide and completes a 17 year goal for the company which has just surpassed 2000 united nationwide. Construction will begin on the development next month with the first homes available late next year. Shares in Summerset Group Holdings closed 3.6 per cent lower yesterday at $2.41.Ex-dividends
3 companies are going ex-dividend today: BT Investment Management (ASX:BTT) will pay 19 cents with 35 per cent franking Fisher and Paykel (ASX:FPH) will pay 5.27 cents un-franked and OzForex Group Limited (ASX:OFX) will pay 3.5 cents fully franked.Commodities
Gold is down $18.70 to $US1,199 an ounce for the December contract on Comex. Silver is down $0.23 to $16.46 for December. Copper is down $0.01 at $2.89 a pound. Oil is down $2.12 at US$66.88 a barrel for January light crude in New York.
