The Australian share market may be in for a positive start to the week, after Wall St closed higher on Friday. US stocks rose with better than expected data on personal income, while the response to factory activity data was mixed.
In US economic news: The US Commerce Department showed personal income in August rose 0.5 per cent and spending rose 0.4 per cent, both figures above economist’s expectations. The Institute for Supply Management revealed its index of manufacturing activity fell to 54.4 in September, from a read of 56.3 the month before. A read over 50 indicates growth.
On Friday, the Dow Jones Industrial Average closed 42 points higher at 10,830. The S&P 500 Index is up 5 at 1,146 and the NASDAQ is up 2 at 2,371.
European stocks were mixed: London’s FTSE up 44 points, Paris is down 23 and Frankfurt down 18.
In Asian markets: Hong Kong and China were closed for public holidays while Tokyo’s Nikkei was up 35 points.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 4 lower to 4,579 and on the futures market the SPI200 is up 25 points. Turning to currencies and the Aussie Dollar at 7:40AM was buying 97.33 US cents, 61.59 Pence Sterling, 81.07 Yen and 70.54 Euro cents.
In company news: Shares in Virgin Blue Holdings Ltd (ASX:VBA) closed steady at $0.435 on Friday. Virgin Blue will attempt to resolve its computer system problems by suspending its web and kiosk check-in services between 8pm tomorrow and 5pm this Thursday. CEO John Borghetti says the airline has identified the problem with its system, that last week caused check-in and flight schedule chaos leading to flight cancellations and delays. During the suspension, domestic flight check-in will open two hours before the scheduled departure time and three hours earlier for international flights. Virgin Blue recorded a profit of $21.3 million in fiscal 2010.
Shares in Telstra Corporation Ltd (ASX:TLS) closed 0.76% up at $2.64 on Friday. Telstra’s chief David Thodey has had his salary cut by around nine percent to $3.19 million in fiscal 2010, falling from $3.5 million the year before. The salary drop was mainly a result of a decline in short-term incentive and superannuation payments. Overall remuneration for senior executives and directors also eased in the last financial year from $21.9 million in fiscal 2009, to $18.29 million in the year to 30 June. In its annual report Telstra says it is expecting flattish revenue in 2011, with a high single digit percentage decline in EBITDA and free cash flow of between $4.5 billion and $5 billion. Telstra’s profit dropped from $4.08 million last year to $3.94 million in the 2010 financial year.
To ex-dividends, no companies are going ex-dividend today. Coming up tomorrow, Australian Masters Corporate Bond Fund No3, David Jones, Greencross and Premier Investments.
To commodities: The price of gold is up US$8.20 to US$1317 an ounce for the December contract on Comex, silver is up US$0.24 to $22.06 and copper is up $0.04 at $3.69 a pound. The price of oil is up $1.61 to US$81.58 a barrel for November light crude in New York.
