Outlook: Aus shares set to open higher

Market Reports

Following positive leads, the Australian share market looks set to open higher after US stocks edged higher on Friday.  Gold surged past $1290 US dollars while Treasuries fell as markets digested the US labor department figures. 

US economic news

Softer than expected jobs data from the US Labor department on Friday is leading many to speculate the Fed will postpone a rate hike in the short term. The jobless rate stayed steady at 5 per cent while nonfarm payrolls showed only 160,000 workers were added in April, well below the 200,000 expected by economists. 
 
Markets

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 17,741, the S&P 500 added 0.3 per cent to close at 2057 and the NASDAQ was up 0.4 per cent to close at 4736.
 
European markets closed mixed: London’s FTSE up 0.1 per cent, Paris lost 0.4 per cent and Frankfurt up 0.2 per cent.
 
Asian markets closed lower: Tokyo’s Nikkei was down 0.3 per cent, Hong Kong’s Hang Seng down 1.7 per cent, and China’s Shanghai Composite fell 2.8 per cent.
 
The Australian share market closed higher on Friday: The S&P/ASX 200 Index closed 13 points up to finish at 5,292. On the futures market the SPI is 22 points up.
 
Currencies

The Australian Dollar at 7:20AM was buying 73.59 US cents, 51.03 Pence Sterling, 78.85 Yen and 64.60 Euro cents.
 
Economic News
 
Due out today from ANZ banking group is April jobs data. 
 
Company news

Rio Tinto Limited (ASX:RIO) has announced approval has been received for the next development stage of the Oyu Tolgoi copper and gold mine in Mongolia. The project is a partnership between Rio Tinto, the Government of Mongolia and Turquoise Hill Resources. First production from the mine is expected in 2020.
 
Shares in Rio Tinto Limited closed 0.65 per cent lower on Friday at $47.75.  
 
8I Holdings Limited (ASX:8IH)  has announced that it has entered into a Subscription and Shareholders’ agreement with CT Hardware. CT Hardware is a Malaysian wholesaler and retailer of power tools, equipment and machinery.  The agreement will see 8IH acquire 49.99 per cent of CT Hardware through a capital injection of S$1.29 million.  
 
Shares in 8I Holdings Limited closed 5.36 per cent higher on Friday at $0.885  
 
Ex Dividends
Only one company is going ex-dividend today, Australia and New Zealand Banking Group (ASX:ANZ) will pay 80 cents fully franked.

Commodities
Gold is up $21.70 to $US1,294 an ounce for the June contract on Comex. Silver has gained $0.20 to $17.53 for July and Copper is steady at $2.15 a pound for July. Oil has gained $0.12 to $44.66 US dollars a barrel for June light crude in New York.
8I Holdings Limited (ASX:8IH)