The Australian share market may open the session higher today, following Wall St closing last week stronger. US stocks rose despite a surprisingly weak report on employment, renewing calls for more government stimulus.
In US economic news: The Labor Department revealed the economy dropped 95,000 non-farm jobs in September while the unemployment rate stayed the same from the month before (August) at 9.6 per cent.
On Friday, the Dow Jones Industrial Average closed 58 points higher at 11,006. The S&P 500 Index is up 7 at 1,165 and the NASDAQ is up 18 at 2,402.
European stocks were mixed: London’s FTSE down 5 points, Paris is down 7 and Frankfurt up 15.
To Asian markets, stocks were also mixed: Hong Kong was up 60 points, Tokyo’s Nikkei was down 96 points and China’s Shanghai Composite up 83.
The Australian share market finished lower on Friday. The S&P/ASX 200 Index closed 10 lower to 4,681 and on the futures market the SPI200 is up 22 points. Turning to currencies and the Aussie Dollar at 7:45AM was buying 98.95 US cents, 62.06 Pence Sterling, 81.14 Yen and 70.73 Euro cents.
In local economic news: Expected out today the Australian Bureau of Statistics international merchandise trade report for September as well as housing finance data for August.
In company news: Shares in Fortescue Metals Group Ltd (ASX:FMG) closed 4.88% up at $5.80 on Friday. Fortescue’s CEO Andrew Forrest has again lashed out at the federal government's proposed mineral resource rent tax (MRRT), branding the tax as a slow growth cancer that lowers competition in the mining industry, and favours the larger players such as BHP Billiton Ltd (ASX:BHP) and Rio Tinto Ltd (ASX:RIO). The comments come following Fortescue securing a $2 billion funding deal to accelerate growth. The corporate banking facility will allow the iron ore miner to refinance notes issued in 2006 and support its strategy of port and hub expansion. Fortescue earned $681.62 million in the 2010 financial year.
Shares in nib Holdings Ltd (ASX:NHF) closed 0.4% down at $1.25 on Friday. Nib managing director Mark Fitzgibbon has requested the board of its takeover target, fellow health insurer GMHBA, speed up the release of its annual report so that its members can evaluate the medical funds books says the Australian Associated Press. Last week nib Holdings made a $140 million takeover bid for GMHBA that was rejected by the target. AAP reports that Mr Fitzgibbon says that GMHBA has not released any financial data in the last 15 months, and so hampering its members ability to assess exactly how nib’s bid undervalues the company, as has been claimed by the board of GMHBA. In the year to 30 June, nib Holdings posted a profit of $61.52 million.
To ex-dividends: There are 11 companies going ex-dividend today, among them, Coffey International with a 3.5 cent fully franked dividend, K&S Corporation with a 7 cent fully franked dividend and Transmetro Corporation with a 15 cent fully franked dividend. Coming up in the next few days, Aberdeen Leaders, Berklee and Ausdrill.
To commodities: and the price of gold is up US$10.30 to US $1345 an ounce for the December contract on Comex, silver is up US$0.52 to $23.10 and copper is up $0.10 at $3.77 a pound.
The price of oil is up $0.99 to US$82.66 a barrel for November light crude in New York.
