The Australian share market looks to open softer following Wall St ending a choppy session in the red. Oil prices, weak economic data and renewed concerns over Europe’s debt crisis weighed on investor sentiment.
US economic news: Empire Manufacturing survey producer a weaker than expected read on general business conditions for manufacturing, dropping by nearly half to 11.9 in May, from 21.7 in April.
To the figures: The Dow Jones Industrial Average started the week 47 points lower, closing at 12,548, the S&P500 dropped 8 points to close at 1,329 and the NASDAQ fell 46 points to close at 2,782.
European stocks closed lower on Monday: London’s FTSE down 2 points, Paris down 29 and Frankfurt was down 16 points.
To Asian markets and stocks were also lower: Hong Kong’s Hang Seng was down 316, Tokyo Nikkei was down 90 and China’s Shanghai Composite was down 22.
The Australian share market started the week 1.3 per cent down: The S&P/ASX 200 Index lost 61 points to close at 4,650. While on the futures market the SPI is currently 16 points lower.
Turning to currencies and the Australian Dollar at 7:35AM was buying $1.0569 US cents, 65.26 Pence Sterling, 85.46 Yen and 74.65 Euro cents.
Economic news: Due out today is the Reserve Bank of Australia’s minutes for its May 3 monetary policy meeting and the Australian Bureau of Statistics lending finance data for March.
Company news: Yesterday shares in Wesfarmers Ltd (ASX:WES) slipped 0.3 per cent to close at $33.00. Wesfarmers owned Coles has boosted the amount of points customers can earn from its shopping rewards program, FlyBuys. According to the Australian Financial Review, Flybuys members who purchase with their FlyBuys linked National Australia Bank Ltd (ASX:NAB) credit card at Coles will be able to increase their points towards a Coles gift voucher at double the speed of the last offer, until the end of September. Both Coles and NAB are believed to be trialling the upgraded offer before considering it as a permanent addition to the Flybuys loyalty plan. In the first six months of the 2011 financial year, Wesfarmers generated a net profit of $1.2 billion.
Yesterday shares in Cabcharge Australia Ltd (ASX:CAB) lost 0.57 per cent to close at $5.25. Cabcharge has booked an 11.6 per cent improvement in March quarter turnover due to its joint venture with ComfortDelGro Cabcharge. In the same first three months of this year, the taxi-fare payment company’s JV posted a 21.8 per cent improvement in earnings before interest and tax. However, its UK-based CityFleet business recorded a drop in earnings and revenue in a period impacted by the strengthening Australian Dollar. In the first six months of the 2011 financial year, Cabcharge Australia reported a net profit of $16.4 million.
Commodities: Gold is down $3.00 to $US1,490 an ounce for the June contract on Comex, silver is down $0.88 to $34.13 for July and copper is up $0.01 at $3.99 a pound. Oil is down $2.28 at $97.37 a barrel for June light crude in New York.
