The Australian share market looks set for a flat start today after Wall St closed out a choppy session mixed overnight. Investors chose to stay on the sidelines, cautious after weaker than expected reports on the labor market.
The Dow managed to close in the black, the S&P500 flat while the Nasdaq slipped into the red.
In economic reports out of the US: Payroll firm ADP reported that the US economy shed 39,000 private sector jobs in September, economists had expected the report to show the economy added 18,000 jobs.
And according to a report by outplacement firm Challenger Gray and Christmas, the number of job cuts planned by employers rose 7% in September from August.
These reports do not bode well for the Labour Department’s key jobs report due out on Friday.
Turning to the figures now, the Dow Jones Industrial Average closed 23 points higher at 10,968. The S&P 500 Index closed steady at 1,160 and the NASDAQ fell 19 to 2,381.
European stocks were higher: London’s FTSE up 46 points, Paris is up 33 and Frankfurt adding 55.
Asian markets were also higher: Hong Kong Hang Seng up 241 points on Wednesday, Tokyo’s Nikkei was gained 173 and China was closed.
The Australian share market finished higher on Wednesday. The S&P/ASX 200 Index closed 80 stronger at 4,687 and on the futures market the SPI200 is up 6 points. Turning to currencies and the Aussie Dollar at 8:40AM was buying 97.75 US cents, 61.53 Pence Sterling, 81.04 Yen and 70.18 Euro cents.
In local economic news: The ABS is to release labour force data for September today.
In company news: Shares in integrated hardwood forest products company Gunns Ltd (ASX:GNS) rose 1.68% to $0.605 on Wednesday. The company says it is considering exiting its West Australian jarrah operations. CEO Greg L’Estrange says the jarrah business has suffered since the state Government’s restructure of the timber industry in January 2004. Gunns is currently reviewing the future of its jarrah sawmilling, processing and retail sales operations in Western Australia. Gunns reported earnings of $28.49 million for the 12 months to June 30, 2010.
Shares in Virgin Blue Holdings Ltd (ASX:VBA) fell 1.14% to $0.435 yesterday. The airline says its online check in system is back up and running after a planned shutdown to test the system caused the cancellation of flights yesterday. Thousands of Virgin Blue passengers were left stranded with 120 flights cancelled after a computer glitch caused its check in and reservation system to fail less than two weeks ago. Virgin Blue says no further shutdowns of the system are planned for today. Virgin Blue Holdings profit for the 2010 fiscal year was $21.3 million.
To ex-dividends: Among those going ex-dividend today is Australian Governance Masters Index Fund with a 1.5 cent fully franked dividend, and Toll Holdings with a 13.5 cent fully franked dividend. Among those coming up tomorrow we have Cromwell with a 1.75 cent unfranked dividend, and Industrea with a 1 cent fully franked dividend.
To commodities: and the price of gold is up US$7.40 to US $1347 an ounce for the December contract on Comex, silver is up US$0.31 to $23.04 and copper is up $0.03 at $3.75 a pound.
The price of oil is up $0.41 to US$83.23 a barrel for November light crude in New York.
