The SPI is pointing to a flat start for the Australian share market, following weak offshore leads after a major aftershock in Japan spooked investors. Stocks had been mostly flat prior to the quake. Meanwhile, the Australian dollar hit a new high overnight, breaking through $US1.05
US economic news: Unemployment benefit claims fell by 10,000 last week, there were 382,000 initial jobless claims filed.
European economic news: The European Central Bank raised interest rates by 0.25 percentage points to 1.25 per cent. It’s the first rise since 2008.
To the figures and on Thursday the Dow Jones Industrial Average fell 17 points to close at 12,409, S&P500 eased 2 points to close at 1,334 and the NASDAQ fell 4 points to close at 2,796.
European stocks ended lower: London’s FTSE down 34 points, Paris down 20 and Frankfurt down 36.
To Asian markets and stocks closed flat: Hong Kong’s Hang Seng was down 3, Tokyo’s Nikkei was up 7 and China’s Shanghai Composite was up 7 points.
The Australian share market closed flat on Thursday: The S&P/ASX 200 Index fell 5 points to close at 4,908. While on the futures market the SPI is currently 5 points lower.
Turning to currencies and the Australian Dollar at 8:00AM was buying $US1.0471 cents, 64.17 Pence Sterling, 89.06 Yen and 73.21 Euro cents.
Company news: On Thursday shares in ASX Ltd (ASX:ASX) slipped 0.8 per cent to close at $33.48. Singapore Exchange has given more information to the Foreign Investment Review Board, but hasn’t amended the details of its proposal. Treasurer Wayne Swan said he was inclined to reject SGX’s proposed $8.4 billion takeover of the local exchange. Singapore Exchange and ASX Ltd’s separate statements outlined their belief that the merger would result in significant benefits for both Australia and Singapore. In the six months to 31 December 2010 ASX Ltd generated a $172 million net profit.
Yesterday shares in Westpac Banking Corporation (ASX:WBC) fell 0.12 per cent to close at $24.43. Westpac has signed a general cooperation agreement with The Export-Import Bank of China. The Australian bank believes the agreement will facilitate development projects in infrastructure, minerals, energy and agriculture. It is hoped the deal will capture an increased share of trade and capital flows in Asia. The Beijing based bank has more than ten domestic branches and representative offices in China and representative offices in St Petersburg, Paris and Johannesburg. In the 2010 financial year Westpac generated a net profit of $6.4 billion.
Ex-dividends: And two companies are going ex-dividend today, they are Australian Governance Masters Index Fund with a $0.02 cent fully franked dividend and Noni B with a $0.01 cent fully franked dividend. Among those coming up on Monday are Harvey Norman and OM Holdings.
Commodities: Gold is up $0.80 to $US1,459 an ounce for the June contract on Comex, silver is up $0.17 to $39.55 for May and copper is up $0.05 at $4.42 a pound. Oil is up $1.47 at $110.30 a barrel for May light crude in New York.
