The Australian share market is expected to open stronger this morning as US stocks erased losses to end above the breakeven mark with investors overlooking disappointing reports on jobs and manufacturing.
Instead concerns were tempered by reports out of Europe, showing that Spain’s debt problems could be improving. And another report showed retail sales improved in Britain.
Looking closer at the latest US economic news: New claims for unemployment rose last week to 472,000 from 460,000 the week before. Continuing claims for job benefits defied forecasts of a drop and rose to 4,571,000 from 4,483,000 the week before.
In other economic news: The Philadelphia Fed index, which measures manufacturing activity, fell to 8 in June from 21.4 in May. Activity slowed far more than expected.
And the key inflation measure, the Consumer Price index fell 0.2% in May versus a 0.1% drop in April. Core CPI, which strips out volatile food and energy prices, rose 0.1% as expected after showing no change in April.
The Dow Jones Industrial Average finished 25 points stronger at 10,434. The S&P 500 Index inched up 1 point 1,116 and the NASDAQ edged 1 point higher at 2,307.
European stocks were higher; London’s FTSE rose 16 points, Paris gained 7 and Frankfurt is up 33.
Asian markets were mixed: Hong Kong’s Hang Seng is up 76, Tokyo’s Nikkei fell 68 and China’s Shanghai Composite lost 10 points.
The Australian share market were dragged lower yesterday with the S&P/ASX 200 Index down 32 points at 4,527 and on the futures market the SPI200’s up 6 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 86.79 US cents, 58.55 Pence Sterling, 78.94 Yen and 70.08 Euro cents.
In local economic news: The Melbourne Institute bulletin of economic trends.
In business news: Shares in National Australia Bank (ASX:NAB) closed 1.23% lower yesterday to $24.80. There are media reports this morning that the NAB may sell part of its advisor network and its North investor platform as it tries to seal a deal with AXA Asia Pacific Holdings. NAB is in currently talks with wealth manager IOOF, Bendigo and Adelaide Bank and Perpetual over the potential sale in order to get its $14 billion takeover of AXA approved by the Australian Competition and Consumer Commission. The Financial Review reports that NAB is offering to sell an adviser network to IOOF to improve its distribution capacity. Currently IOOF has 640 advisers compared to over 3000 that NAB would have after buying AXA. National Australia Bank posted a net profit of just over $2.5 billion in 2009.
Shares in Sunland Group (ASX:SDG) are steady at 70.5 cents. The Gold Coast-based property developer is facing possible legal action from Dubai government-owned developer Nakheel Group over a transaction that has seen two Australians jailed, accused of alleged fraud. Fairfax media reports that Nakheel is considering a damages claim over the acquisition of a waterfront plot in Dubai in 2007. Earlier this year, Sunland came under fire from the ASX after it was found to have misled the exchange three times by claiming that it and its chief operating officer in the Middle East David Brown, have never been investigated as a part of the deal. Sunland has claimed that it was misled into paying a consulting fee of more than $14 million to buy the Dubai Waterfront site. Sunland Group posted a $145 million loss in 2009.
Checking ex-dividends, going is Metcash paying a 15 cent fully franked dividend. And next week Cape Lambert Resources is among those companies going ex-dividend.
To commodities, and the price of gold jumped $18.20 to US$1,247.50 an ounce for the June contract on Comex. Silver is up 34 cents at US$18.77 and copper is down 9 cents at $2.90 a pound.
And the price of oil slipped 88 cents to US$76.79 a barrel for July light crude in New York.
