The SPI is pointing to a positive start to the week for The Australian share market. Despite Wall St closing last week lower, US stocks rose on Friday’s session after encouraging reports on inflation and consumer sentiment.
US economic: The Federal Reserve reported that industrial production increased 0.8 per cent in March, coming in slightly better than expectations. Also out, The Labor Department's Consumer Price Index showed prices increased 0.5 per cent in March, in line with expectations. However core CPI, removing volatile food and energy prices, was a little lower than expected, marginally lifting just 0.1 per cent in month.
To the figures: On Friday the Dow Jones Industrial Average, closed 57 points stronger at 12,342, S&P500 gained 5 points to close at 1,320 and the NASDAQ added 4 points to close at 2,765.
European stocks ended the week higher: London’s FTSE up 32 points, Paris up 4 and Frankfurt up 32.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng was down 6, Tokyo Nikkei was down 62 and China’s Shanghai Composite was up 8 points.
On Friday the Australian share market ended the week at a ten-day low: The S&P/ASX 200 Index dropped 32 points to close at 4,852. On the futures market the SPI is 16 points higher.
Turning to currencies and the Australian Dollar at 7:30AM was buying $1.0558 US cents, 64.75 Pence Sterling, 87.84 Yen and 73.23 Euro cents.
Economic news: Due out today is the Housing Industry Association-RP Data residential land report for the 2010 December quarter.
Company news: On Friday shares in Woolworths Ltd (ASX:WOW) eased 0.56 per cent to close at $26.53. Higher prices for fresh produce are expected to drive Woolworth’s third quarter sales result. The supermarket giant is due to today release its quarterly earnings and some analysts have estimated food and liquor sales could rise by around 5 per cent, up from 2.5 per cent for the prior quarter. For the half year ended 31 December 2010, Woolworths generated a $1.2 billion net profit.
On Friday shares in Fortescue Metals Group Ltd (ASX:FMG) fell 1.37 per cent to close at $6.48. Yet another Fortescue executive has confirmed that the miner is planning to list its magnetite assets in Hong Kong as early as this year. Chief operating officer Neville Power says that Fortescue doesn’t see those magnetite assets being developed by its current balance sheet and the company would consider everything from trade sale through to an initial public offering and listing, and, joint venture relationships. The comments follow executive director Russell Scrimshaw earlier this month advising that Fortescue is looking to list some of its assets in Hong Kong, and, founder and CEO Andrew Forrest claiming the company will “look at all the options”. In the first half of the 2011 financial year Fortescue Metals reported a $309 million net profit.
Ex-dividends: The only company going ex-dividend today is Ludowici with a $0.10 fully franked dividend. Coming up tomorrow is Brickworks.
Commodities: Gold is up $11.70 to $US1,486 an ounce for the June contract on Comex, silver is up $2.69 to $42.57 for May and copper is down $0.02 at $4.26 a pound. Oil is up $1.55 at $109.66 a barrel for May light crude in New York.
