The SPI is pointing to a lower start to the day for the Australian share market, following weak overseas leads. Wall St closed little changed after cautious trade ahead of first quarter corporate reports due this week.
To the figures: The Dow Jones Industrial Average started the week 1 point firmer at 12,381, while the S&P500 closed 4 points lower at 1,324 and the NASDAQ fell 9 points to close at 2,772.
European stocks started the week lower: London’s FTSE down 2 points, Paris down 23 and Frankfurt down 12.
To Asian markets and stocks were also lower: Hong Kong’s Hang Seng was down 93, Tokyo Nikkei was down 48 and China’s Shanghai Composite was down 7.
The Australian share market started the week at a 12 month high: The S&P/ASX 200 Index advanced 31 points to close at 4,971. While on the futures market the SPI is currently 20 points lower.
Turning to currencies and the Australian Dollar at 7:25AM was buying $1.05 US cents, 64.22 Pence Sterling, 88.85 Yen and 72.74 Euro cents.
Economic news: Due out today is the Dun and Bradstreet business expectations survey, and also, the National Australia Bank monthly business survey for March.
Company news: Shares in Westpac Banking Corporation (ASX:WBC) started the week 0.53 per cent higher at $24.70. Westpac’s CEO Gail Kelly says she expects interest rates to stay on hold for the next several months. Speaking in Melbourne yesterday Mrs Kelly suggested September as the likely time for an interest rate change of 25 basis points up. The comments comes just a few days after the head of ANZ Banking Group (ASX:ANZ), Mike Smith, sent out a similar message and forecast that rates are likely to remain where they are for the short term. In the 2010 financial year Westpac generated a net profit of $6.4 billion.
Yesterday shares in Qantas Airways (ASX:QAN) fell 3.2 per cent yesterday to close at $2.12. Qantas looks to be under more strain to increase surcharges and fares amid the rising price of jet fuel due to limited crude oil supplies. Australia’s largest airline has already announced a series of cost cutting measures this year and labelled the significant and sustained increases in the price of fuel as the most serious challenge it has faced since the Global Financial Crisis. The surging price of fuel shows no sign of slowing, with jet fuel hitting through $US140 a barrel and crude oil lifting over $US113 a barrel at the end of last week. For the half year ended on 31 December 2010, Qantas reported a net profit of $239 million.
Ex-dividends: The only company going ex-dividend today is Kresta Holdings with a $0.005 fully franked dividend. Among those coming up this week are TPG Telecom, CTI Logistics, FFI Holdings and Washington H. Soul Pattinson and Co.
Commodities: Gold is down $6.00 to $US1,468 an ounce for the June contract on Comex, silver is flat at $40.61 for May and copper is down $0.04 at $4.46 a pound. Oil is down $2.87 at $109.92 a barrel for May light crude in New York.
