Following mixed overseas leads the Australian sharemarket looks set to open flat. US shares pulled back in overnight trade, chipping away at last week’s gains. Shares in the energy and materials space followed oil prices lower. Market insiders are pointing to the upcoming earnings season in the US as a dampner on market sentiment.
Markets
Wall Street closed lower yesterday: The Dow Jones Industrial Average lost 0.3 per cent to close at 17,737, the S&P 500 lost 0.3 per cent to close at 2,066 and the NASDAQ lost 0.5 per cent to close at 4,892.
European markets closed up: London’s FTSE gained 0.3 per cent, Paris gained 0.5per cent and Frankfurt gained 0.3 per cent.
Asian markets closed mixed: Tokyo’s Nikkei fell 0.3 per cent, Hong Kong’s Hang Seng lost 1.3 per cent, and China’s Shanghai Composite gained 0.2 per cent.
The Australian share market closed flat yesterday: The S&P/ASX 200 Index closed 4 points down to finish at 4,995. On the futures market the SPI is 2 points up.
Currencies
The Australian Dollar at 7:30AM was buying $US0.7603 cents, 53.32 Pence Sterling, 84.63 Yen and 66.75 Euro cents.
Economic news
Despite a 7 percent appreciation in the Australian Dollar in the last month, market insiders are saying a higher currency is unlikely to prompt the Reserve Bank to cut interest rates when it meets today. Also on the agenda today is Trade Balance figures.
Company news
Fortescue Metals Group Limited
(ASX:FMG) has announced it will transition to a full owner operator model at its Christmas Creek mining operations, as part of a bid to cut costs. The change will take full effect from the completion of the current mining services contract with Downer EDI Limited which ends of 30 September 2016. Shares in Fortescue closed 1.17 per cent up yesterday at $2.59.
Gateway Lifestyle Group Limited
(ASX:GTY) has announced the successful completion of the final component of its fully underwritten placement to raise $40.2 million and 2 for 15 entitlement offer to raise $79.8 million. The retail component of the entitlement offer raised approximately $20.4 million at the offer price of $2.40 per new security. Shares in Gateway Lifestyle Group closed 0.37 per cent up yesterday at $2.68.
Ex-dividends
3 companies are going ex-dividend today: OrotonGroup will pay 6 cents fully franked, SEEK will pay 21 cents fully franked. Meanwhile Southern Cross Media will pay 3.3 cents also fully franked.
Commodities
Gold has fallen $6.50 to $US1,217 an ounce for the June contract on Comex.
Silver has fallen $0.14 to $14.90 for May.
Copper has fallen $0.02 to $2.14 a pound.
Oil has fallen $1.33 to $US35.46 a barrel for May light crude in New York.
