The Australian share market looks likely to open higher today, following a positive lead from Wall Street on Friday. US stocks closed higher for the second consecutive week amid optimistic economic data.
In US economic news: A Government report revealed wholesale inventories increased 1.3 per cent in July, after an upwardly revised 0.3 per cent rise in June. Investors received the better than expected data as a move towards economic recovery.
On Friday, the Dow Jones Industrial Average closed 48 points higher at 10,463. The S&P 500 Index is up 5 points to 1,110 and the NASDAQ is up 6 at 2,242.
European stocks were mixed: London’s FTSE up 7 points, Paris is up 4 and Frankfurt down 7.
Asian markets were higher: Hong Kong’s Hang Seng was 90 points up on Friday, Tokyo’s Nikkei up 141 points and China’s Shanghai Composite was up 7 points.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 22 lower to 4,560 and on the futures market the SPI200 is up 12 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 92.99 US cents, 60.56 Pence Sterling, 78.31 Yen and 73.19 Euro cents.
In local economic news: The Australian Bureau of Statistics is expected to release lending finance data for July.
In business news: Shares in National Australia Bank Ltd (ASX:NAB) closed 0.68% lower at $24.67 on Friday. NAB is expected to this week announce if it will continue with its $13.3 billion takeover of AXA Asia Pacific Holdings Ltd’s (ASX:AXA), that the Australian Competition and Consumer Commission blocked for the second time last week. NAB Wealth group executive Steve Tucker said to ABC TV yesterday, the bank will decide within days whether or not to appeal the regulator’s decision. Mr Tucker says a range of options are being looked at, including selling more of AXA APH to IOOF Holdings Ltd (ASX:IFL), in addition to the proposed sale of its North platform, in an effort to appease competition concerns in the market for retail investment platforms. National Australia Bank reported a profit of $2.1 billion for the six months to 31 March 2010.
Shares in Virgin Blue Holdings (ASX:VBA) closed 6.98% down at $0.40 on Friday. Virgin Blue chairman and major shareholder Richard Branson says the airline may be forced to alter its new strategy if regulators continue to oppose its proposed tie up with Delta Air Lines. The airline’s planned merger hit a stumbling block on Friday with the ACCC deeming the proposed tie-up would lessen competition, following the US Transportation Department’s rejection of the joint venture. Mr Branson said to the Australian Financial Review that the alliance is important because it enables Virgin to compete with Qantas Airways Ltd (ASX:QAN), increasing competition for consumers to benefit from. Virgin Blue Holdings posted a profit of $21.3 million in fiscal 2010.
To ex-dividends: There are 28 companies going ex-dividend today, among them we have: AVJennings with a 1.54 cent fully franked dividend, CSL with a 45 cent 11.7 per cent franked dividend, InvoCare with a 13 cent fully franked dividend, SMS Management and Technology with a 16.5 cent fully franked dividend, and Woolworths with a 62 cent fully franked dividend.
To commodities: and the price of gold is down US$4.40 to US $1244 for the September contract on Comex, silver is down US$0.01 to $19.80 and copper is down $0.04 at $3.40 a pound.
The price of oil is up $2.20 to US$76.45 a barrel for October light crude in New York.
