This morning, the Australian share market is set for a subdued open. While investors around the world are worried about rising geopolitical tensions with Syria, Russia and North Korea, US equities have shrugged off these worries, finishing higher this morning – with all sectors in positive territory. Leading the way was financials, technology and industrials stocks. The Dow Jones in particular surged 184 points in one session – boosted by Goldman Sachs and Boeing.
This week is earnings season in the US, and investors have high hopes – with Netflix, eBay, Goldman Sachs and Bank of America set to report this week.
US economic newsOver the long weekend, the US posted some weak economic data.
The Federal Reserve Bank of New York released the April results of its Empire State Manufacturing Survey. The Bank reported that business activity grew at a more subdued pace in New York State this month, with the general business conditions index hitting 5.2 – well below March’s result of 16.4.
According to the National Association of Home Builders, builder confidence in the market for newly-built single-family homes remained solid in April – falling three points to a level of 68 points.
The Labor Department reported that the consumer prices index (which is a key gauge of inflation) fell 0.3% in March, which is its biggest drop in more than two years.
The Commerce Department reported that March retail sales fell 0.2%, which is more than expected.
Australian economic newsThis afternoon, the Reserve Bank will release the minutes from its April monetary policy meeting – detailing why it kept the official cash rate on hold at the record low 1.5% for the seventh consecutive month.
MarketsWall Street had a roaring finish this morning: The Dow Jones was up 0.9% to 20,637, the S&P 500 gained 0.9% to 2,349, and the NASDAQ lifted 0.9% to 5,857 points.
European markets lasted traded on Thursday, and finished lower: London’s FTSE was down 0.3%, Paris fell 0.6% and Frankfurt dropped 0.4%.
Asian markets had a mixed performance: the Nikkei was up 0.1% yesterday, the Hang Seng last traded on Thursday, and dropped 0.2% and the Shanghai Composite was down 0.75% yesterday.
As for Australia’s ASX 200, it closed 44 points (or 0.74%) lower last Thursday to close at 5,890 just before the Easter long weekend. It was up 27 points over the week.
On the futures market, the SPI last traded on Thursday and was down 15 points.
Company newsService Stream Ltd
(ASX:SSM) has secured a further two-year contract with Vodafone Hutchison Australia, to provide wireless design and construction services. Service Stream estimates the value of this contract, based on historical revenues, will be around $40-$50 million over the next 24 months. Last Thursday, Service Stream shares closed 3.36% higher at $1.23.
Ex-dividendsNew Hope Corporation
(ASX:NHC) will pay a dividend of 4 cents, fully franked.
Mineral Commodities
(ASX:MRC) will pay 1.2 cents, unfranked.
CurrenciesAt 7.30am, the Australian Dollar was buying $US75.91 cents, 60.42 Pence Sterling, 82.77 Yen and 71.33 Euro cents.
CommoditiesGold has dropped $2.20 to $US1,286 an ounce.
Silver is down 10 cents at US$18.41 an ounce.
Oil is down $0.38 to $US53.22 a barrel.
