Following negative leads, the Australian share market looks set to open lower. U.S. markets reacted to data released on Friday pointing to the slowest U.S. jobs growth in five years, with all the major bourses ending the day in the red. Analysts will be looking closely to see how the Fed reacts in the coming weeks to the latest data, in light of the market’s expectations of a rate hike this June.
US economic news
The market received a shock on Friday with Nonfarm payrolls coming in at 38,000, well below market expectations of 164,000. The April Balance of Trade widened slightly to US$37.4 billion, however the increase was less than expected.
Markets
Wall Street closed lower on Friday: The Dow Jones Industrial Average lost 0.2 per cent to close at 17,807, the S&P 500 fell 0.3 per cent to close at 2,099 and the NASDAQ dropped 0.6 per cent to close at 4,943.
European markets closed mixed: London’s FTSE was up 0.4 per cent, Paris lost nearly 1 per cent and Frankfurt was down 1.0 per cent.
Asian markets closed up: Tokyo’s Nikkei added 0.5 per cent, Hong Kong’s Hang Seng gained 0.4 per cent, and China’s Shanghai Composite rose 0.5 per cent.
The Australian share market closed higher on Friday: The S&P/ASX 200 Index closed 40 points up to finish at 5,319, down 87 points on the week. On the futures market the SPI is up 1 point.
Currencies
The Australian Dollar at 7:20AM was buying $US73.69 cents, 50.94 Pence Sterling, 78.39 Yen and 64.82 Euro cents.
Economic news
Due out today from ANZ Banking Group is jobs data for May. The Melbourne Institute will also release its monthly inflation gauge.
Company news
National Australia Bank
(ASX:NAB) has announced it will increase the size of its NAB Capital Notes 2 Offer from $750 million to at least $1.35 billion.
The notes have been allocated under the Broker Firm and Institutional Offers with the bank setting a margin of 4.95 percent per annum.
Shares in National Australia Bank closed 0.53 per cent up on Friday at $26.48.
WorleyParsons Limited
(ASX:WOR) has announced its Norwegian division, Rosenberg WorleyParsons, has been awarded a fabrication contract by Statoil worth AU$95 million in revenue over three years.
The contract will see the company build three bridges connecting four platforms and two flare booms at the Johan Sverdrup oil field.
Shares in WorleyParsons closed 3.75 per cent up on Friday at $7.20.
Commodities
Gold has increased $30.30 to $US1,243 an ounce for the August contract on Comex.
Silver has added $0.34 to $16.36 for July.
Copper has gained $0.04 to $2.11 a pound for July.
Oil is down $0.37 to $US48.62 a barrel for July light crude in New York.
