The Australian sharemarket is expected to open higher after Federal Reserve chairman Ben Bernanke said US growth should resume in the current half year, in his speech delivered on Friday. He also said the central bank is ready to provide more support to a weak US economy.
US economic news
The Thomson Reuters/University of Michigan's consumer sentiment index, which was released at the end of last week, shows the final August reading on the overall index of consumer sentiment was at 55.7, down from 63.7 the month before.
Figures
At the end of last week the Dow Jones Industrial Average gained 135 points to close at 11,285, the S&P500 gained 18 points to 1,177 and the NASDAQ gained 60 points to close at 2,480.
European stocks finished lower on Friday: London’s FTSE closed 1 point weaker, Paris was down 31 and Frankfurt was down 47 points.
To Asian markets, stocks closed mixed: Hong Kong’s Hang Seng closed 170 lower, Tokyo Nikkei was up 25 and China’s Shanghai Composite lost 3 points.
At the end of the last week, the Australian share market finished lower. On Friday the S&P/ASX200 Index lost 13 points, to close at 4,200. On the futures market the SPI is currently 21 points higher.
Currencies
The Australian Dollar at 7:40am was buying US$1.0577, 64.75 Pence Sterling, 81.16 Yen and 72.98 Euro cents.
Economic news
Due out today are the Housing Industry Association’s new home sales figures for May.
Company news
Shares in Gunns Limited (ASX:GNS) last traded at 20.5 cents. Shares are in a trading halt pending the announcement of a decision from the Tasmanian government to determine whether the company will be compensated for giving up native timber contracts. Prime minister Julia Gillard said its controversial pulp mill in northern Tasmania is now a “commercial issue”. In the six months to June 30, Gunns Limited (ASX:BNS) reported a net loss of $355.48 million.
On Friday shares in Leighton Holdings Limited (ASX:LEI) gained 1.89 per cent to close at $21. The company’s chairman and chief executive David Stewart resigned last week, prompting expectations that further executive changes are ahead. News Ltd reports that there is speculation that former chief executive David Stewart's right-hand man, Stephen Sasse, could come under pressure following the appointment of new boss Hamish Tyrwhitt. In the six months to June 30, Leighton Holdings Limited (ASX:LEI) reported a net loss of $405.7 million.
Ex-dividends
We’ve got 17 companies going ex-dividend today, including Anglogold; the ASX; Bendigo Adelaide Bank; Macarthur Coal; Mortgage Choice; Telecom NZ and WorleyParsons.
Commodities
Gold is up $23.20 to $US1,797 an ounce for the December contract on Comex, silver is up 21 cents to $40.95 for September and copper is up 2 cents at $4.10 a pound. Oil is up seven cents at $85.37 a barrel for October light crude in New York.
