The Australian share market is set to open higher this morning, according to ASX futures – this is despite weak leads from foreign equity markets.
Overseas investors are anxious about mounting geopolitical tensions between the US with Syria and North Korea, pushing up the value of safe-haven assets such as gold and the Japanese Yen.
This morning, the CBOE Volatility Index (VIX), which measures fear in the market, rose 7% higher to 15.14 points.
US economic newsThe Bureau of Labor Statistic has released the February figures for its Job Openings and Labor Turnover Survey. The Bureau says there hasn’t been much change in the number of job openings (at 5.7 million), new hires (at 5.3 million) and employment separations (5.1 million).
The National Federation of Independent Business reported that the small business optimism index fell 0.6 points to 104.7 in March. It also reported that optimism is being translated into more spending and hiring – though not at “explosive rates”.
Australian economic newsThe Westpac-Melbourne Institute will release the Consumer Sentiment Index figures for April – so look out for that later today.
MarketsWall Street finished lower this morning: The Dow Jones was down 0.03% to 20,651 (which was practically flat), the S&P 500 slipped 0.1% to 2,354, and the NASDAQ lost 0.2% to 5,867 points.
European markets finished mixed overnight: London’s FTSE gained 0.2%, Paris was down 0.1%, and Frankfurt dropped 0.5%.
Asian markets were also mixed: the Nikkei retreated 0.3%, the Hang Seng plunged 0.7% and the Shanghai Composite rose 0.6%.
Australia’s ASX 200 gained 16 points (or 0.3%) to close at 5,929 yesterday.
This morning, on the futures market the SPI is up by 18 points.
Company newsAutomotive Holdings Group Ltd
(ASX:AHG) has reached an in-principle agreement to acquire the Ford and Mitsubishi dealerships at Essendon Fields, near Melbourne. The acquisition cost is $8.5 million for goodwill, plus stock and assets, and is expected to settle in May. Subject to completion, AHG will hold 184 automotive franchises at 111 dealerships in Australia and New Zealand. Yesterday, Automotive Holdings shares closed steady at $4.09.
Ex-dividendsTwo companies are going ex-dividend today. They are:
- Cadence Capital
(ASX:CDM), which will pay 4 cents per share, fully franked, and
- Lantern Hotel Group
(ASX:LTN), which will pay 4.6 cents, unfranked.
CurrenciesThe Australian Dollar at 7:30AM was buying $US75.01 cents, 60.05 Pence Sterling, 82.19 Yen and 70.73 Euro cents.
CommoditiesGold has gained $20 to $US1,277 an ounce.
Silver is up 42 cents at $18.34 an ounce.
Oil is up $0.32 to $US53.80 a barrel.
