The SPI is pointing to a positive start to the week for The Australian share market after healthy offshore leads. Wall St closed the week and month of April sharply higher as US investors welcomed encouraging earnings results. At home eyes will be on the rising Australian dollar and its impact on the local bourse, with the Aussie now just shy of 110 US cents.
US economic: The Commerce Department reported that personal spending rose 0.6 per cent in March while personal incomes rose 0.5 per cent, both figures coming in slightly higher than expected.
To the figures, on Friday: Dow Jones Industrial Average, closed 47 points stronger at 12,811, S&P500 gained 3 points to close at 1,364 and the NASDAQ added 1 point to close at 2,874.
European stocks ended the week higher: While the UK market was closed, Paris was up 2 and Frankfurt up 39.
Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 85, Tokyo Nikkei was closed and China’s Shanghai Composite was up 24 points.
On Friday the Australian share market ended the week over 1 per cent down: The S&P/ASX 200 Index dropped 50 points to close at 4,823. While on the futures market the SPI is currently 32 points higher.
Turning to currencies and the Australian Dollar at 7:45AM was buying $1.098 US cents, 65.71 Pence Sterling, 89.08 Yen and 74.09 Euro cents.
Economic news: Due out today is the Reserve Bank of Australia’s index of commodity prices for May, the Australian Bureau of Statistics first quarter house price indexes of eight capital cities, the Australian Industry Group/Pricewaterhouse Coopers performance of manufacturing index for April, and also, the TD Securities monthly inflation gauge for April.
Company news: On Friday shares in Rio Tinto Ltd (ASX:RIO) dropped 1.39 per cent to close at $82.21. Rio Tinto’s chairman has warned that the surging price of commodities is unsustainable, despite maintaining confidence in strong demand from China and India. Speaking to The Australian, the global miner says it will maintain a very strong balance sheet to protect it from future volatility in global markets. Rio has also announced that it has now assumed control of Riversdale Mining Ltd (ASX:RIV) with the appointment of two new directors, and a stake of over 73 per cent, and will seek to de-list the Mozambique-focused coal miner following the end of its takeover bid. In the 2010 financial year Rio Tinto generated a net profit of $14.9 billion.
At the end of last week shares in Origin Energy Ltd (ASX:ORG) fell 1.68 per cent to close at $16.35. Origin Energy has posted higher production, and, higher sales revenue for the March quarter on the back of higher commodity prices. In the year to date sales revenue grew 46 per cent to $627.5 million. March quarter production was also 21 per cent stronger than a year earlier, however down 8 per cent from the December quarter because of a planned shutdown at the Otway Gas Project, adverse weather conditions and seasonal demand. In the six months to 31 December 2010 Origin Energy booked a net loss of $100 million.
Ex-dividends: Three companies are going ex-dividend today and they are Asian Centre for Liver Diseases and Transplantation with a $0.001 unfranked dividend, Henderson Group with a $0.071 unfranked dividend and Waterco with a $0.04 fully franked dividend.
Commodities: Gold is up $18.00 to $US1,556 an ounce for the June contract on Comex, silver is up $1.06 to $48.60 for July and copper is down $0.08 at $4.18 a pound. Oil is up $1.07 at $113.93 a barrel for June light crude in New York.
