Outlook: Aus shares poised to dip on open

Market Reports

 
 
Following a drop in oil prices and a fall in US stocks on Friday, the Australian share market looks poised to open lower. While official retail sales data showed an unexpected pick-up in spending for April by the world’s biggest economy, contrary weaker results and outlooks from US department stores Nordstrom and J.C. Penney weighed on market sentiment. 
 
US economic news

Retail sales data released on Friday showed stronger than expected consumer confidence, rising 1.3 percent in April from March, the highest gain since March 2015. Today the Federal Reserve Bank of New York will release its Empire State Manufacturing Index.
 
 
Markets

Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 1.1 per cent to close at 17,535, the S&P 500 fell 0.9 per cent to close at 2,047 and the NASDAQ dropped 0.4 per cent to close at 4718.
 
European markets closed up on Friday: London’s FTSE gained 0.6 per cent, Paris rose 0.6 per cent and Frankfurt was up 0.9 per cent.
 
Asian markets closed lower: Tokyo’s Nikkei fell 1.4 per cent, Hong Kong’s Hang Seng was down almost 1 per cent, and China’s Shanghai Composite dropped 0.3 per cent.
 
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 30 points down to finish at 5,329. On the week the ASX 200 rose 37 points. On the futures market the SPI is 15 points down. 
 
Currencies

The Australian Dollar at 7:20AM was buying $US0.7263 cents, 50.61 Pence Sterling, 78.89 Yen and 64.24 Euro cents.
 
 
Company news
 
Sigma Pharmaceuticals Limited (ASX:SIP) has announced that insurer AIG intends to exercise a claw-back right in relation to a class action settlement reached by Sigma in 2012 and funded by AIG. The claw-back was activated as a consequence of guilty pleas by the former CEO and CFO. Sigma and AIG have agreed to settle the claim for 12.5 million, resulting in a one off $8.8 million impact on Sigma’s Net Profit After Tax. Shares in Sigma closed 1.31 per cent up on Friday at $1.16. 
 
ViaGOLD Capital Limited (ASX:VIA) has advised it has entered into a Memorandum of Understanding with Smart Triumph Group Holdings Limited. The companies are proposing to establish a mining equipment cooperation company with registered capital of HK$1 million. ViaGOLD will take a 70 percent equity interest in the business and will be responsible for the supervision of financial and business management. Shares in ViaGOLD last traded at $2.35. 
 
Ex-dividends
 
One company is going ex-dividend today. Eclipx Group Limited will pay 6.75 cents fully franked. 
 
Commodities
Gold has gained $1.50 to $US1,273 an ounce for the June contract on Comex.
Silver is up $0.03 to $17.13 for July.
Copper is steady $2.07 a pound for July.
Oil has lost $0.28 to $US46.90 a barrel for June light crude in New York.

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