The positivity of the last few days looks set to stall this morning as the iron ore price takes a big hit along with weak US trade following the release of mixed jobs data for June.
A slew of Americans leaving the workforce took a toll on the participation rate in the US, and while job creation was positive, it was lower than the previous month and the unemployment rate dropped to 5.3 per cent for June. And of course these numbers will have a direct bearing on the likelihood of the Fed choosing to raise rates in September.
Closer to home the Aussie dollar is trading lower on the back of further weakness in iron prices with miners likely to see some selling this morning.
Global figures
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.2 per cent to close at 17,730, the S&P 500 lost 0.03 per cent to close at 2,077 and the NASDAQ is down 0.1 per cent to close at 5,009.
European markets closed mixed: London’s FTSE gained 0.3 per cent, Paris lost just below 1 per cent and Frankfurt Is down 0.7 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.95 per cent, Hong Kong’s Hang Seng gained 0.1 per cent, and China’s Shanghai Composit lost 3.5 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 84 points up to finish just below 5,600. On the futures market the SPI is 19 points down.
Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.7635 cents, 48.93 Pence Sterling, 93.97 Yen and 68.91 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is retail sales figures for May.
Company news
ANZ Banking Group
(ASX:ANZ) yesterday reported that Martin Hanrahan had been appointed as Global Head of Corporate Advisory. The role is focused on mergers and acquisitions services to international and institutional banking clients in Australia and Asia. Mr Hanrahan has worked in ANZ’s industrials advisory team since 1998 and advised on a number of major deals. Shares in ANZ closed 1.26 per cent up yesterday at $32.91
BHP Billiton’s Limited
(ASX:BHP) New Mexico Coal has executed the sale of its San Juan Mine to Westmoreland Coal that was announced in May. The major miner says completion is due at the end of the year with full handover taking place in January 2016. The deal depends on final approvals by regulators but the company says its pleased the mine will continue operations. Shares in BHP closed 1.31 per cent up yesterday at $27.00
Ex-dividends 1company’sgoing ex-dividend today. US Residential Fund
(ASX:USR) is paying 2.3c unfranked.
Commodities
Gold haslost $4.30 to $US1,165an ounce for the August contract on Comex.
Silver has gained $0.07 to $15.64 for September.
Copper has gained $0.01 to $2.64 a pound.
Oil has dipped $0.44 to $US56.52 a barrel for August light crude in New York.
