The SPI is pointing to a slightly higher start to the week for The Australian share market after Wall St rose following a stronger than expected jobs report. After four days in the red US stocks rebounded on Friday though still closed more than 1 per cent lower in a week that saw mainly mediocre economic data and falling commodity prices.
US economic news: The Labor Department reported that the US economy added 244,000 jobs in April, up from 221,000 jobs added in March. The result was better than expected, however the unemployment rate rose to 9 per cent in April from 8.8 per cent in March - economists were expecting the rate would remain unchanged. President Obama said the jobs report is evidence of progress.
To the figures and on Friday: Dow Jones Industrial Average, closed 55 points stronger at 12,639, S&P500 gained 5 points to close at 1,340 and the NASDAQ added 13 point to close at 2,828.
European stocks ended the week higher: London was up 57, Paris was up 53 and Frankfurt up 115.
To Asian markets and stocks closed weaker: Hong Kong’s Hang Seng was down 102, Tokyo Nikkei was down 145 and China’s Shanghai Composite was down 9 points.
On Friday the Australian share market ended the week slightly lower: The S&P/ASX 200 Index dropped 11 points to close at 4,743. While on the futures market the SPI is currently 8 points higher.
Turning to currencies and the Australian Dollar at 8:00AM was buying $1.0712 US cents, 65.42 Pence Sterling, 86.43 Yen and 74.59 Euro cents.
Economic news: Due out today is ANZ’s job advertisement series and also National Australia Bank’s monthly business survey, both for April.
Company news: On Friday shares Woodside Petroleum Ltd (ASX:WPL) slipped 0.53 per cent to close at $45.31. Woodside has secured a deal worth over $1 billion with native title claimants and the West Australian government to develop a natural gas project in the Kimberly. The historic agreement is believed to be one of the biggest ever struck between a resource company and Native Title claimants and removes a key barrier for Woodside to make final investment decision by mid next year. The Browse LNG Development hopes to commercialise the Brecknock, Calliance and Torosa gas and condensate fields, 425 kilometers off the Kimberley coast, and potentially other resources in the Browse Basin. In the 2010 financial year, Woodside Petroleum recorded a net profit of $1.5 billion.
At the end of last week shares in Incitec Pivot Ltd (ASX:IPL) rose 3.23 per cent to close at $3.83. Analysts are tipping Incitec Pivot will today reveal earnings growth of more than 40 per cent when the explosives and fertiliser maker posts its first half results. According to the Australian, analysts forecast Incitic could deliver an interim net profit of up to $215 million, putting it on track for a full year profit of around $545 million. The company is also expected to today detail progress at its $935 million ammonium nitrate facility in Queensland and address speculation that it’s lining up to bid for Burrup Fertilisers. In the 2010 financial year, Incitec reported a net profit of $412 million.
Ex-dividends: Two companies are going ex-dividend today and they are Macquarie Group with a fully franked dividend of $1.00 and United Overseas Australia with a $0.02 unfranked dividend. Coming up tomorrow are Astivita Renewables and Tamawood.
Commodities: Gold is down $1.00 to $US1,491 an ounce for the June contract on Comex, silver is down $0.95 to $35.00 for July and copper is down $0.02 at $3.98 a pound. Oil is down $2.62 at $97.18 a barrel for June light crude in New York.
