Sydney, Jan 27, 2009 AEST (ABN Newswire) - US stocks closed slightly higher overnight on the surprisingly good housing data which reflects buyers were taking advantage of discounted price in the property market.
On Friday, the Australian share market closed down to a near five-year. The benchmark S&P/ASX200 index was down 144.1 points, or 4.13 per cent, at 3,342.7 while the broader All Ordinaries index fell 131.6 points, or 3.83 per cent, to 3,300.3. The market is expected to stabilize today after the good leads from US and European stock markets.
At 0816 AEDT on the Sydney Futures Exchange, the March SPI futures index was 16 points higher at 3,345.
Key Economic Facts and Figures
Economists expect the inflation figures of December to fall for the first time in two years. The annual inflation rate might be down to 3.6%, and close to the RBA's 2%-3% target. The drop of inflation data would push the central bank to take further rate cut to boost consumer confidence.
Sources have confirmed additional low-income tax relief is under consideration as the Government looks for new ways to stimulate the economy and protect jobs.
Today the Australian Bureau of Statistics releases producer price indices for the December quarter.
M&A News
APN News & Media Ltd(ASX:APN) has confirmed its parent, Independent News & Media PLC (INM)(ISE:IPD), has decided to hold on to its shareholding in the company. INM confirmed that it had given up a two-month attempt to sell its 39.1 per cent stake in APN.
Chinese metal trader Sinosteel has reportedly being buying up more shares in Murchison Metals(ASX:MMX) and now owns up to 4.5 percent of the iron ore miner. There's speculation Sinosteel may be about to make a new application to the Foreign Investment Review Board. Murchison shareholders are tomorrow due to approve the adoption of a new constitution, which will include an updated rule to prevent a proportional takeover from succeeding without prior approval from shareholders.
Important Corporate News
Foster's Group(ASX:FGL) could be forced to write down the value of its wine assets by a further A$700million when it releases the findings of a strategic review in coming weeks.
South Australian brewer Coopers will spend A$6 million this year upgrading its Regency Park brewery in readiness for the possible Australian production of Budweiser beer. No concrete deal has been signed with Budweiser brand owner Anheuser-Busch InBev(EBR:ABI) but a key Australian sales threshold would be met mid-year.
Lihir Gold Ltd(ASX:LGL) said it had been forced to shut its mine in Papua New Guinea over a compensation dispute between the local landowners and the apex landowner body.
Lindsay Australia (ASX:LAU) expects net profit of A$2.3m to A$2.5m for the six months ended 31 December compared with A$1.29m for the previous corresponding period.
Pharmaceuticals manufacturer and distributor Sigma Pharmaceuticals(ASX:SIP) is alleged to have sent letters to its key pharmacy clients requesting them to advance sales orders as Sigma attempts to meet end-of-year budget targets.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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