Returning from the Queen’s birthday holiday on Monday the Australian share market looks set to start the trading week lower. Following negative global leads local traders will absorb America’s better than expected jobs report released on Friday and China’s disappointing trade data released yesterday.
America’s economy added 280,000 jobs in May, representing the biggest gain in five months. China’s imports were shown to have dropped 18.1 per cent in May, notching the seventh straight monthly fall. In the week ahead a number of key local data releases are due and Chinese inflation figures are out today.
Global markets
Wall Street dropped into the new week: The Dow Jones Industrial Average fell 0.5 per cent to close at 17,767, the S&P 500 fell 0.7 per cent to close at 2,079 and the Nasdaq fell 0.9 per cent to close at 5,022.
European markets moved lower on Monday: London's FTSE 100 dipped 0.2 per cent, France's CAC 40 sank 1.3 per cent and Germany's DAX retreated 1.2 per cent.
Asian markets ended mixed on Monday: Japan’s Nikkei eased 0.02 per cent, Hong Kong’s Hang Seng added 0.2 per cent, and China’s Shanghai Composite gained 2.2 per cent.
The Australian share market shed 5 per cent over last week ahead of America’s non-farm payrolls data on Friday: The S&P/ASX 200 Index ended 6 points lower on Friday, extending the weekly loss of 288 points to finish at 5,498. On the futures market the SPI is 24 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.7695, 50.17 Pence Sterling, 95.87 Yen and 68.22 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance figures for April
National Australia Bank Limited
(ASX:NAB): Business survey for May
ANZ Banking Group Limited
(ASX:ANZ): Job advertisements series for May
Economic expectations
National Australia Bank Limited
(ASX:NAB) says the release of today’s survey will be the first reading on business confidence and conditions since the release of the Federal Budget in May. Over the prior month in April the bank reported business conditions fell to 4 points while confidence remained steady at 3. NAB notes an emerging transition in growth toward the east with New South Wales, Victoria and Tasmanian business conditions improving. Shares in National Australia Bank fell 1.45 per cent to close at $31.85 on Friday.
Also due out today is ANZ Banking Group’s
(ASX:ANZ) job ads series for last month ahead of official labour figures due this Thursday. Following a strong run of employment data economists expect the unemployment rate to stay steady at 6.2 per cent. The Australian economy is forecast to have created between 10,000 and 20,000 jobs in May after a flat read the month prior. Shares in ANZ Banking Group fell 1.05 per cent to close at $31.17 on Friday.
To Ex-dividends
ALS Limited
(ASX:ALQ) paying a 10 cent, 25 per cent franked dividend
James Hardie Industries PLC
(ASX:JHX) paying a 61.9 cent unfranked dividend
Commodities
Gold has added $5.50 to $US1,174 an ounce for the August contract on Comex.
Silver has eased $0.06 to $15.96 for July.
Copper has firmed $0.004 to $2.70 a pound.
Oil has fallen $0.99 to $US58.14 a barrel for July light crude in New York.
Thank you for watching the Australian Share Market Outlook on Tuesday 9 June. I’m Lelde Smits for the Finance News Network.
