Outlook: ASX set to recover some losses

Market Reports

The Australian share market looks set to recover some of the week’s losses on the back of upbeat global leads. Wall Street was given a boost by China’s stimulus announcement over the weekend and better than expected local earnings. 
 
Closer to home we can expect to hear from Rio Tinto Limited (ASX:RIO) with first quarter results, Leighton Holdings Limited (ASX:LEI) will hold its annual general meeting and release first quarter results and quarterly output results are due from Oil Search Limited (ASX:OSH)
 
Global markets
 
Wall Street started the week stronger: The Dow Jones Industrial Average gained 1.2 per cent to close at 18,035, the S&P 500 gained 0.9 per cent to close at 2,100 and the Nasdaq gained 1.3 per cent to close at 4,995.
 
European markets also moved higher on Monday: London's FTSE 100 rose 0.8 per cent, France's CAC 40 rose 0.9 per cent and Germany's DAX rose 1.7 per cent.
 
Asian markets started the week in the red: Japan’s Nikkei fell 0.1 per cent, Hong Kong’s Hang Seng fell 2 per cent, and China’s Shanghai Composite fell 1.6 per cent.
 
After falling 1.5 per cent over last week the Australian share market dropped 0.8 per cent into the new week: The S&P/ASX 200 index retreated 45 points to finish at 5,833 on Monday. On the futures market the SPI is 44 points higher. 
 
Currencies 
 
The Australian dollar at 7:30am was buying $US0.7727, 51.85 Pence Sterling, 92.13 Yen and 71.97 Euro cents.
 
Economic news due out today
 
Reserve Bank of Australia: Minutes from its April board meeting
 
Australian Bureau of Statistics: International merchandise imports figures for March
 
ANZ Banking Group (ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey
 
Housing Industry Association-CoreLogic RP Data: Residential Land Report for the December quarter
 
Company news 
 
Leighton Holdings Limited (ASX:LEI) has tied up the $1.15 billion sale of its contracting division John Holland. The construction and engineering company inked a deal to offload the asset to China Communications Construction Company at the end of last year. CEO Marcelino Fernández Verdes says the divestment will enable the company to be sustainably competitive and invest in future growth. Shares in Leighton Holdings fell 2.89 per cent to close at $20.15 on Monday. 
 
Quickflix Limited (ASX:QFX) says its customer growth has continued over a quarter in which competition heated up with Netflix and Stan launching their services. The video streaming service increased its paying customers by 6 per cent and overall customers by 3 per cent over the March quarter. Quickflix has advised it remains in talks with certain industry parties and investors in relation to growth opportunities with Quickflix. Shares in Quickflix ended steady at $0.0015 on Monday following the announcement.  
 
Ex-dividends
 
Ridley Corporation Limited (ASX:RIC) paying a 1.5 cent fully franked dividend
Washington H. Soul Pattinson and Co. Limited (ASX:SOL) paying a 20 cent fully franked dividend
 
Commodities 
 
Gold has declined $9.40 to $US1,194 an ounce for the June contract on Comex. 
Silver has eased $0.34 to $15.89 for May. 
Copper has lost $0.04 to $2.73 a pound.
Oil has gained $0.64 to $US56.38 a barrel for May light crude in New York.