The SPI is pointing to a positive start to the week for the Australian share market. At the end of last week Wall St closed higher, after a strong jobs report lifted US stocks. European stocks also closed in positive territory.
US economic news: The Labor Department reported that 216,000 new jobs were generated in March, more than the 180,000 jobs that had been expected and up from the 194,000 jobs added in February. The unemployment rate dropped to a two-year low of 8.8 per cent. Also, the Institute for Supply Management’s manufacturing index dropped slightly to 61.2 in March, coming in under expectations. And, the Commerce Department's construction spending report revealed a 1.4 per cent fall in February, more than expected.
At the end of last week, Dow Jones Industrial Average, closed 57 points higher at 12,377, S&P500 added 7 points to close at 1,332 and the NASDAQ gained 9 points to close at 2,790.
European stocks ended the week higher: London’s FTSE up 101 points, Paris up 66 and Frankfurt up 139.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was up 274, Tokyo Nikkei was down 47 and China’s Shanghai Composite was up 39 points.
The Australian share market finished last week stronger: The S&P/ASX 200 Index rose 24 points to close at 4,862. While on the futures market the SPI is currently 33 points higher.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0395 US cents, 64.51 Pence Sterling, 87.49 Yen and 73.06 Euro cents.
Economic news: Due out today is the TD Securities/Melbourne Institute inflation gauge for March and the ANZ job advertisements series for March.
Company news: On Friday shares in Woodside Petroleum Ltd's (ASX:WPL) closed 1.28 per cent stronger at $47.40, after climbing to an 11-month high mid last week, amid rising speculation that BHP Billiton Ltd (ASX:BHP) could be preparing to buy Royal Dutch Shell’s unwanted 24.3 per cent stake in the oil and gas producer. Western Australian premier Colin Barnett has added to the takeover talk, claiming he prefers Woodside to remain independent. While Mr Barnett said he would not oppose suitors such as BHP he claims, “It is very important that Woodside continues as the Australian partner and operator of the North-West Shelf as a distinct company”. Woodside Petroleum posted a net profit of $1.5 billion in the 2010 financial year.
On Friday shares in JB Hi-Fi Ltd (ASX:JBH) fell 3.63 per cent to close at $19.40. Despite a recent full year profit downgrade, JB Hi-Fi chairman Patrick Elliott has stated that, “there are plenty of good days still to come”. Last week the electronics retailer warned that its full year net profit is now likely to dip to between $108.5 million and $113.5 million, partially due to the restructure its underperforming Clive Anthonys business. Speaking to ABC TV, Mr Elliot says JB Hi-Fi is eyeing a record full year result and will look to continue growth through opening 13 to 15 stores per year for the next three to five years. In the first half of its 2011 financial year, JB Hi-Fi generated a net profit of $87.9 million.
Ex-dividends: Nine companies are going ex-dividend today. Among them we have Australian Leaders Fund with a $0.05 fully franked dividend, Clime Capital with a $0.01 fully franked dividend, Scott Corporation with a $0.02 fully franked dividend, Tasmanian Mines with a $0.06 fully franked dividend and Wilson HTM Investment Group with a $0.02 fully franked dividend. Among those coming up tomorrow are Sigma Pharmaceuticals and Statatel.
Commodities: Gold is down $11.00 to $US1,428 an ounce for the June contract on Comex, silver is down $0.33 to $37.73 for May and copper is down $0.06 at $4.26 a pound. Oil is up $1.22 at $107.94 a barrel for May light crude in New York.
