The Australian share market looks to be in for a steady start following mixed overseas leads. Despite ending mostly weaker on the last day of the quarter, US markets recorded their strongest first quarter performance in more than a decade. Locally, Aussie stocks finished 1.7 per cent higher for the quarter. The Australian dollar continued its record run, nudging 104 US cents overnight on the back of rising commodity prices.
US economic news: The Labor Department reported that weekly jobless claims dropped to 388,000 in the week ended on 26 March, slightly above expectations but still 6,000 jobless claims under the week before.
On Wall St: The Dow Jones Industrial Average fell 31 points to close at 12,320, S&P500 eased 2 points to close at 1,326 and the NASDAQ rose 4 points to close at 2,781.
European stocks ended lower: London’s FTSE down 40 points, Paris down 35 and Frankfurt down 16.
To Asian markets and stocks closed mixed: Hong Kong’s Hang Seng was up 76, Tokyo’s Nikkei was up 46 and China’s Shanghai Composite was down 28 points.
The Australian share market closed higher on Thursday: The S&P/ASX 200 Index rose 16 points to close at 4,838. While on the futures market the SPI is currently 2 points higher.
Turning to currencies and the Australian Dollar at 8:50AM was buying $US1.0329 cents, 64.43 Pence Sterling, 85.95 Yen and 72.91 Euro cents.
Company news: On Thursday shares in Qantas Airways (ASX:QAN) slipped 0.45 per cent to close at $2.18. Australia’s largest airline has been dealt another blow, with Moody's downgrading its credit rating outlook from stable to negative. Earlier this week Qantas announced a series of cost cutting measures and warned surging fuel prices are the most serious challenge it has faced since the Global Financial Crisis. Moody's now rates Qantas at Baa2 and says its financial profile remains relatively weak for its ratings, with leverage remaining at high levels and projected weak free cash flow. In the six months to 31 December 2010 Qantas generated a $239 million net profit.
Yesterday shares in Iluka Resources Ltd (ASX:ILU) jumped 8.74 per cent to close at $13.30. That was, after having risen 17 per cent over the last two days, and, prompting a price query from the Australian Securities Exchange. Goldman Sachs analyst Ian Preston told the Australian that the soaring price of the stock was driven by stronger zircon prices, fuelled by Chinese demand. Mr Preston also forecast that Iluka, the world's largest zircon producer, will make a significant profit over the next few years, and, a takeover approach could be imminent. Iluka Resources moved out of the red in fiscal 2010, reporting a full year net profit of $36 million.
Ex-dividends: And two companies are going ex-dividend today, they are Customers with a $0.03 cent unfranked dividend and Gowing Brothers with a $0.06 cent fully franked dividend. Among those coming up next week are Australian Leaders Fund, Brookfield Prime Property, Clime Capital, Cedar Woods Properties and Scott Corporation.
Commodities: Gold is up $15.10 to $US1,438 an ounce for the April contract on Comex, silver is up $0.38 to $37.89 for May and copper is up $0.03 at $4.31 a pound. Oil is up $2.45 at $106.72 a barrel for April light crude in New York.
