The Aussie sharemarket should open higher today on the back of a rise in Wall St with the Nasdaq snapping a seven day losing streak.
The weaker US dollar has investors there hoping for stronger corporate earnings overseas meanwhile first quarter results have been mostly above analyst expectations despite the subdued economic conditions.
US economic news
The Institute for Supply Management says the index for manufacturing fell to 50.8 in April from 51.8 in March. However a figure above 50 still indicates factory activity is expanding.
Markets
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.7 per cent to close at 17,891, the S&P 500 added 0.8 per cent to close at 2,081 and the NASDAQ added 0.9 per cent to close at 4,818.
European markets closed higher: London’s FTSE was closed, Paris added 0.3 per cent and Frankfurt advanced 0.8 per cent.
Asian markets closed up: Tokyo’s Nikkei slipped 3.1 per cent, Hong Kong’s Hang and China’s Shanghai Composite were both closed for a public holiday.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 9 points down to finish at 5,243. On the futures market the SPI is 12 points up.
Currencies
The Australian Dollar at 7:20AM was buying 76.69 US cents, 52.29 Pence Sterling, 81.6 Yen and 66.53 Euro cents.
Economic news
Due later today is the latest interest rate decision from the Reserve Bank. The latest building approvals are also due.
Company news
SMS Management and Technology Limited
(ASX:SMX) has seen CEO Jacqueline Korhonen fall on her sword. Ms Korhonen lasted just over 12 months in the job with SMS Chairman Derek Young saying results were simply not up to scratch.Current CFO Rick Rostolis will now take the helm. Shares in SMS last traded 2.65 per cent lower at $1.84.
Yancoal Australia Limited
(ASX:YAL) has told the ASX that the Donaldson coal operation in the NSW Hunter Valley has been placed on care and maintenance. The move is in response to global commodity prices and employees have been moved to neighbouring mines while new feasibility studies are undertaken. Shares in Yancoal closed 2.06 per cent higher yesterday at nearly 10 cents.
Commodities Gold has added $5.30 to $US1,296 an ounce for the June contract on Comex. Silver has slipped 14 cents to $17.68 for July. Copper has dipped 2 cents to $2.27 a pound. Oil has shed $1.14 to $US44.78 a barrel for June light crude in New York.
