SYDNEY (XFN-ASIA) - Share prices are expected to open higher led by the resources sector following a recovery in oil and copper prices, dealers said.
They said broad buying support is expected as cashed-up pension funds continue to pour money into the market while a promising global economic outlook has lessened concerns about a possible interest rate hike next month.
Wholesale price data for the three months to December, to be released today, combined with Wednesday's release of the fourth quarter consumer price index, will be key factors in determining whether the Reserve Bank Australia hikes its overnight cash rate another 25 basis points to 6.50 pct on Feb 7.
The S&P/ASX 200 March futures contract ended its last session up 36.0 points at 5,690.0 suggesting a positive start to trading.
On Friday the S&P/ASX 200 added 0.7 points or just 0.01 pct to close at 5,673.1, inching its way toward last Monday's record close of 5,673.8. Over the trading week the benchmark index rose 34.3 points or 0.6 pct.
The broader All Ordinaries index gained 1.3 points to a fresh record close of 5,652.1, surpassing Thursday's record of 5,650.7.
In New York, share prices closed mixed on Friday after profit reports and forecasts from blue chips such as IBM and General Electric failed to impress Wall Street. A stronger-than-expected consumer sentiment report saw the chances wane of the Federal Reserve Board cutting interest rates anytime soon.
The Dow Jones Industrial Average ended down 2.4 points at 12,565.53.
News Corp finished up 0.63 pct while National Australia Bank's American Depositary Receipts rose 1.07 pct.
In London, share prices closed higher helped by merger and acquisition speculation with InterContinental Hotels the top riser up amid on speculation about of an offer from private equity firms or Middle East investors.
The FTSE 100 ended up 26.9 points at 6,237.2.
BHP Billiton added 1.50 pct and Rio Tinto gained 0.86 pct.
Crude oil prices rebounded on Friday, buoyed by short-covering ahead of the weekend as well as colder weather moving into the US Midwest. OPEC lowered its forecast for 2007 world demand growth due to recent warm weather in the US as well as noting that its members were still pumping ahead of supply targets.
The February Nymex crude contract ended 1.51 usd higher at 51.99 usd a barrel.
Base metal prices were generally higher on the London Metal Exchange on Friday, except for a slight 0.1 pct fall in the price of lead. Nickel surged 2.0 pct to yet another record high of 36,100 usd a ton on continued concerns about tight supplies.
Copper prices staged a partial recovery on Friday with 3-month delivery copper ending 0.7 pct up at 5,580 a ton after a sharp decline in LME stocks.
Gold prices rose in response to a lower US dollar, higher oil price and positive US economic data. The February benchmark Comex gold contract rose 8.30 usd to 636.40 an ounce.
(1 usd = 1.27 aud)
bruce.hextall@xfn.com