The Australian share market is set to kick off the week with a rally, after Wall Street closed higher on Friday, also posting solid weekly gains. The Nasdaq also posted its biggest one-week gain for the year.
It comes as traders and investors weighed up the likelihood of interest rate policies coming through, after weaker than expected jobs data hit the market.
On the back of the jobs data, Gold hit a 9-and-a half month high.
Meantime, despite our futures being up over 20 points, investors will also today absorb the aftermath of more North Korea tension. US President Trump tweeted he was considering stopping trade with any country that did business with North Korea after North Korea claimed its most powerful bomb so far, a successful hydrogen bomb test which triggered an earth wake.
US economic newsUS economy created 156,000 jobs in August, disappointing economist who expected 180,000 new jobs expected. Meantime, the unemployment rate rises to 4.4 per cent, also disappointing forecasts it would hold at 4.3 per cent. The Bureau also announced wages grew at an annualized rate of 2.5 per cent, also less than expected.
Local economic newsKicking off the week today, the ABS will reveal the ‘Business Indicators’ publication for June quarter, which includes businesses data on profits, sales, inventories and wages. Also out today, data on job ads from ANZ.
On Tuesday, the ABS will release the Balance of Payments figures on key government finance, such as consumption and investment, which are a key input into the Wednesday’s economic growth estimates. Also on Tuesday, the RBA will hold their all important Bank Board meeting, with interest rates expected to remain at historical lows and the next interest rate move ear marked for ‘a long way out’. In the evening the RBA Governor will also deliver a speech.
Come Wednesday the economic growth figures for the June quarter will be announced, with expectations the economy grew by 0.5 per cent in the quarter and 1.5 per cent over the year.
On Thursday the ABS will report International trade for July, including exports and imports and we will also get a health check on retail trade for July. Closing out the week on Friday, we’ll learn how housing finance is clocking along.
Markets Wall Street closed higher: The Dow Jones Industrial Average gained 0.2 per cent to close at 21,988, the S&P 500 added 0.2 per cent to close at 2,477 and the NASDAQ advanced 0.1 per cent to close at 6,435
European markets closed higher: London’s FTSE rose 0.1 per cent, gained 0.7 per cent and Frankfurt also rose 0.7 per cent.
Asian markets mixed: Tokyo’s Nikkei added 0.2 per cent, Hong Kong’s Hang Seng fell 0.1 per cent, and China’s Shanghai Composite gained 0.2 per cent.
And back home, the Australian share market closed in positive territory on Friday: At the closing bell, The S&P/ASX 200 Index closed 10 points higher for the day at 5,725. 19 points lower on the week.
On the futures market the SPI is 24 points up.
Company newsGlobal litigation funder, IMF Bentham
(ASX:IMF) it expecting to recognise a $1 million profit from a confidential Hong Kong case settlement. The firm will see the profit this 2018 financial year, as well as revenues of about $17.2 million. IMF says it’s the third successful case in Hong Kong, demonstrating continued diversification of its case revenue. Shares in IMF Bentham
(ASX:IMF) last traded 0.52 per cent higher to $1.94.
Ex-dividends
Currencies One Australian Dollar at 7:40AM was buying 79.53 US cents, 61.40 Pence Sterling, 87.24 Yen and 66.97 Euro cents.
Commodities Gold has gained $8.20 to $US1,330 an ounce.
Silver has added $0.24 to $US17.82 an ounce.
And Oil has gained $0.06 to $US47.29 a barrel.
