Outlook: ASX set to drop before ABS jobs data

Market Reports

The Australian share market looks set to widen the week’s losses and drop ahead of official employment figures. Global markets sagged as the price of copper shed more than 5 per cent to 5.5-year lows but the oil price moved higher after sitting at 6-year lows yesterday. US traders were also stung by lower than expected December retail sales as the Fed’s Beige Book affirmed a ‘modest’ and ‘moderate’ outlook for the economy.  
 
Closer to home the focus will be on Australia’s monthly jobs report which is expected to show a steady jobless rate of 6.3 per cent and job creation of about 15,000 positions.
 
Global markets
 
Wall Street retreated on Wednesday: The Dow Jones Industrial Average dropped 1.1 per cent to close at 17,427, the S&P 500 dropped 0.6 per cent to close at 2,011 and the Nasdaq dropped 0.5 per cent to close at 4,639.
 
European markets moved lower on Wednesday: London's FTSE 100 fell 2.4 per cent, France's CAC 40 fell 1.6 per cent and Germany's DAX fell 1.3 per cent.
 
Asian markets fell yesterday: Japan’s Nikkei sank 1.7 per cent, Hong Kong’s Hang Seng lost 0.4 per cent, and China’s Shanghai Composite eased 0.4 per cent.
 
The Australian share market extended losses yesterday and tumbled 1 per cent by close: The S&P/ASX 200 index dropped 51 points on Wednesday to finish at 5,354. On the futures market the SPI is 21 points lower. 
 
Currencies 
 
The Australian dollar at 8:20am was buying $US0.8148, 53.5 Pence Sterling, 95.61 Yen and 69.14 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Labour force figures for December and dwelling starts data for the September quarter 2014  
 
Company news
 
Electronics retailer Harvey Norman Holdings Limited (ASX:HVN) has not been able to officially explain its recent share price gains. Responding to an ASX speeding ticket the company could not offer any reasons for its stock rising to a high of $3.78 yesterday and closing as the benchmark’s best performer. The spike came on the same day Chairman Gerry Harvey reportedly told media the company had seen a “big surge” in sales over the Christmas-New Year period. Shares in Harvey Norman Holdings closed 6.65 per cent stronger on Wednesday at $3.69. 
 
Shares in Telstra Corporation Limited (ASX:TLS) soared to a 13.5 year high yesterday to levels not reached since 2001. Over the past year Australia’s biggest telco has seen its stock gain about 15 per cent as it pushes ahead with acquisitions. Just last month Telstra struck a new $390 million NBN deal, invested in Elemental and Panviva and bought Asian telco Pacnet for $US697 million. Shares in Telstra Corporation gained 0.98 per cent on Wednesday to close at $6.17.
 
Ex-dividends 

Abacus Property Group (ASX:ABP) paying an 8.5 cent unfranked dividend
Euroz Limited (ASX:EZL) paying a 1.75 cent fully franked dividend
 
Commodities 

Gold has dipped $4.30 to $US1,230 an ounce for the February contract on Comex. 
Silver has eased $0.30 to $16.86 for March. 
Copper has fallen $0.12 to $2.52 a pound. 
Oil has gained $2.51 to $US49.02 a barrel for February light crude in New York.

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