The SPI is pointing to a softer start for Aussie shares, after Wall St ended a recent rally to finish last week lower. Despite a strong US labour report, renewed concerns over political unrest in the Middle East continued to weigh on the market, the price of oil hitting a two and a half year high in offshore trading.
In US economic news: The Labor Department reported that the unemployment rate dropped to a two-year low of 8.9 per cent in February, from 9 per cent in January. The unemployment rate has now fallen almost a full percentage point in the past quarter, the fastest improvement in nearly 28 years.
At the end of last week, Dow Jones Industrial Average, closed 88 points lower to 12,170, S&P500 lost 10 points to close 1,321 and the NASDAQ fell 14 point to close 2,785.
European stocks ended lower on Friday: London’s FTSE down 15 points, Paris down 41 and Frankfurt down 47.
To Asian markets and stocks were higher: Hong Kong’s Hang Seng was up 286, Tokyo Nikkei was up 108 and China’s Shanghai Composite was up 39 points.
The Australian share market finished stronger on Friday, clocking up its biggest one day gain in the past seven weeks. The S&P/ASX 200 Index advanced 58 points to close at 4,864. On the futures market the SPI is currently 28 points lower.
Turning to currencies and the Australian Dollar at 7:50AM was buying $US1.013 cents, 62.26 Pence Sterling, 83.43 Yen and 72.44 Euro cents.
Economic news: Due out today is the ANZ job advertisements data for February and also, the Australian Industry Group/Housing Industry Association performance of construction index.
Company news: At the end of last week shares in Wesfarmers Ltd (ASX:WES) rose 1.26 per cent to close at $33.65. From milk wars to egg wars, Australia’s egg farmers have become the latest group to speak out against aggressive discounting from Wesfarmer’s owned Coles supermarkets. The Australian Egg Industry Association claims that Coles is creating an artificial economy and unsustainable market, by slashing the price of Coles branded free range eggs and hiking the price of other brands. A senate inquiry will tomorrow look into the impact of how lower dairy prices at the checkout are impacting Australian farmers. In the first six months of the current financial year, Wesfarmers booked a net profit of $1.2 billion.
On Friday shares in Fletcher Building Group Ltd (ASX:FBU) closed steady at $6.40. New Zealand’s Fletcher Building has warned that the Christchurch earthquake is likely to chip up to $17.6 million off its 2011 financial year net earnings after tax. The buildings products company says activity in Christchurch after the recent earthquakes is expected to increase as reconstruction work gets underway, however a short-term negative impact on earnings would be incurred over the assessment and planning phases. Fletcher has also announced that it has extended its $700 million takeover offer for Australia's Crane Group Ltd (ASX:CRG) by two weeks until the 25 March. In the first six months of the current financial year, Fletcher Building posted a $129.8 million net profit.
Ex-dividends: And 33 companies are going ex-dividend today. Among them we have BHP Billiton with a $0.46 fully franked dividend, Brambles with a 20% franked dividend of $0.13, Monadelphous Group with a $0.40 fully franked dividend, Panoramic Resources with a $0.04 fully franked dividend, and Toll Holdings with a $0.12 fully franked dividend. Among those coming up tomorrow are Breville Group.
Commodities: Gold is up $13.50 to $US1,428 an ounce for the April contract on Comex, silver is up $1.96 to $35.33 for May and copper is down 0.02 at $4.49 a pound. Oil is up $2.51 at $104.42 a barrel for April light crude in New York.
