The Australian stock market has received mixed leads from offshore markets but is likely to open slightly higher as Wall Street traded lower but gold, oil and silver prices were firmer.
US stocks fell on the final day of the first quarter after the latest jobs report presented a reminder of how weak the jobs market still is.
To that economic news: ADP’s monthly jobs report found private-sector employers cut 23,000 jobs in March compared to slashing 24,000 jobs in February.
Also out, the regional reading on manufacturing – the Chicago PMI fell to 58.8 in March from 62.6 the previous month.
And the Census Bureau reported factory orders for manufactured goods rose 0.6% in February, slightly higher than analysts' had expected but significantly less than January's 2.5% increase.
To the figures now and the Dow Jones Industrial Average fell 51 points to 10,857. The S&P500 Index lost 4 points at 1,169 and the NASDAQ is down 13 points at 2,398.
European stock markets finished mixed, influenced by Wall Street’s performance and those ongoing concerns about Greece’s debt problems. London’s FTSE added 7 points, Paris slipped 13 points and Frankfurt gained 11 points.
Asian stocks were lower, Hong Kong’s Hang Seng is down 135 points, Tokyo’s Nikkei fell 7 points and China’s Shanghai Composite lost 19 points.
The Australian share market closed lower yesterday. The S&P/ASX 200 Index fell 41 points to 4,876 and on the futures market the SPI200 is up 13 points. On to currencies: the Aussie Dollar at 8:45AM was buying 91.74 US cents, 60.42 Pence Sterling, 85.74 Yen and 67.91 Euro cents.
To what’s ahead in local economics news: ABS international trade in goods and services data for February, as well as the job vacancies report for the February quarter.
The RBA publishes its index of commodity prices for March.
The TD Securities-Melbourne Institute inflation gauge for March is due, as is the Australian Industry Group-PwC performance of manufacturing index for March.
To company news around this morning: Shares in Westfield Group (ASX:WDC) closed 1.47% lower yesterday at $12.06. It seems that quite a number of trendy fashion retailers are eyeing off space in Westfield’s new Sydney City complex. Global retailers Zara, Gap, Banana Republic, H&M and Old Navy are reportedly interested in taking up some of the space in the $1 billion complex. Westfield hasn’t confirmed if that is the case however it has told the Australian Financial Review that building and leasing progress has gone extremely well. Westfield says that the centre is now on track for the first stage of the complex to be opened towards the end of this year, instead of April 2011. The final stage is on track to open in 2012. Westfield Group reported $457 million loss in 2009.
Shares in AMP (ASX:AMP) finished 1.88% lower yesterday at $6.26. Analysts are reading more into the Australian Competition and Consumer Commission’s call for extra time to assess AMP’s proposed acquisition of Axa Asia Pacific Holdings. The ACCC was due to publish an assessment of the AMP bid today but in a move that has surprised some analysts, the competition watchdog has delayed that decision until no later than April 22nd. That date is also the same deadline given for the assessment of the National Australia Bank’s bid for Axa Asia Pacific. The Australian Financial Review reports that competition lawyers said that the chances of the ACCC vetoing NAB’s offer have now increased by up to 40% from about 5%. The ACCC’s biggest concerns about NAB’s offer centre on its ability to dominate the market for retail and investment platform services – something it wouldn’t have to worry about with AMP. AMP’s 2009 net profit was $739 million.
To companies going ex-dividend: Ammtec is going with a 6.5 cent fully franked dividend. ARB Corp 7.5 cent fully franked, Crown with a 18 cent 60% franked, Scott Corporation 2 cent fully franked and Skywest Airlines with a 0.4 cent unfranked dividend.
To commodities: Gold rose $8.80 to US$1,113.30 an ounce for the May contract on Comex. Silver is up 20 cents to US$17.51 and copper is steady at US$3.55.
And the price of oil rose $1.39 to US$83.76 a barrel for May light crude in New York.
