Following positive leads, the Australian share market looks set to open higher. Despite a lacklustre US GDP report on Friday, strong earnings from tech giants helped Wall Street maintain July’s upward momentum. This week local investors will be taking their cue from corporate earnings, tomorrow’s RBA meeting and the Bank of England’s policy meeting on Thursday, where it is widely expected to cut interest rates for the first time since the financial crisis.
US economic news
The Employment Cost Index increased 0.6 percent for the three month period ending June 2016. An advance estimate on Q2 US GDP figures out on Friday disappointed the market, indicating only a 1.2 percent annualized growth rate. The figure was well below market expectations for the world’s largest economy, with consensus estimating 2.6 percent.
Markets
Wall Street closed mixed on Friday: The Dow Jones Industrial Average lost 0.1 per cent to close at 18,432, the S&P 500 added 0.2 per cent to close at 2,174 and the NASDAQ gained 0.1 per cent to close at 5,162.
European markets closed up: London’s FTSE rose 0.1 per cent, Paris gained 0.4 per cent and Frankfurt lifted 0.6 per cent.
Asian markets closed mixed: Tokyo’s Nikkei added 0.6 per cent, Hong Kong’s Hang Seng fell 1.3 per cent, and China’s Shanghai Composite was down 0.5 per cent.
The Australian share market closed higher on Friday: The S&P/ASX 200 Index closed 6 points up to finish at 5,562. The market was up 64 points on the week. On the futures market the SPI is 17 points up.
Currencies
The Australian Dollar at 7:20AM was buying $US75.99 cents, 57.48 Pence Sterling, 77.56 Yen and 68.03 Euro cents.
Economic news
Due out today from the Melbourne Institute are July’s inflation figures. Housing Industry Australia will release new monthly home sales for June while the Australian Industry Group will also release the Australian Manufacturing Index for July.
Company news
Pepper Group Limited
(ASX:PEP) has announced it will enter into a 50-50 joint venture with Spanish banking group Banco Popular. The two companies will initially pursue opportunities in the Spanish unsecured consumer finance market, with a global long term view for future growth. The JV will have a combined outstanding loan book of $404 million, making it the 5th largest player in the Spanish Point-of-Sale finance market.
Shares in Pepper Limited closed 1.96 per cent lower on Friday at $2.50.
Centuria Capital Limited
(ASX:CNI) has announced its subsidiary, Centuria Property Funds Limited, has completed the purchase of The Zenith, an institutional grade office in Chatswood, Sydney. The property was purchased for $279.1 million and increases funds under management by Centuria to $1.06 billion.
Shares in Centuria Capital Limited closed 0.47 per cent up on Friday at $1.08.
Commodities
Gold has gained $16.30 to $US1,358 an ounce for the December contract on Comex.
Silver has added $0.16 to $20.35 for September.
Copper has risen $0.01 to $2.22 a pound for September.
Oil has added $0.46 to $US41.60 a barrel for September light crude in New York.
