The SPI is pointing to a positive start to the week and the last day of the month for the Australian share market. After last weeks strong gains at home and in the US both markets closed Friday modestly higher as doubts emerged over Europe’s plans to tackle debt. This week eyes will be on the outcome of meetings from Australian, US and European central banks and the G20 summit.
US economic news
Personal spending increased last month, according to the Commerce Department. The monthly report showed spending rose 0.6 per cent to $68.7 billion US dollars in September after a 0.2 per cent increase the month before.
Consumer sentiment came in better than expected. The Thomson Reuters-University of Michigan’s Consumer Sentiment Index increased 1.5 points to 60.9 in October.
Figures
Wall Street advanced for the fourth straight week on Friday: The Dow Jones Industrial Average rose 23 points to 12,231, the S&P500 added 0.5 pointS to close at 1,285 and the Nasdaq lost 1 point to close at 2,737.
European stocks closed mixed on Friday: London’s FTSE was down 12 points, Paris was down 20 points and Frankfurt was up 8 points.
To Asian markets, stocks closed higher: Hong Kong’s Hang Seng was up 331 points, Tokyo Nikkei was up 124 and China’s Shanghai Composite was up 38.
The Australian share market recorded its biggest weekly gain in more than two years last week though finished the day flat: The S&P/ASX 200 Index added 5 points to close at 4,353. On the futures market the SPI is currently 13 points higher.
Currencies
The Australian Dollar at 8:45AM was buying $US1.0708, 66.42 Pence Sterling, 81.01 Yen and 75.72 Euro cents.
Economic news
Due out today is TD Securities and Melbourne Institute’s inflation gauge for October.
Company news
Shares in Qantas Airways Limited (ASX:QAN) closed 1.59 per cent lower on Friday at $1.545, and are expected to fall further today after a turbulent weekend for the airline that saw Qantas ground all of its domestic and international flights. Qantas carriers will likely be back in the skies this afternoon after Fair Work Australia this morning ordered industrial action to cease and for Qantas to reverse its planned lockout of workers. CEO Alan Joyce said he had no choice but to make the unexpected move after months of escalating industrial action against Qantas which is now estimated to have cost the airline more than $100 million. In the 2011 financial year Qantas reported a net profit of $249 million.
Macquarie Group Limited (ASX:MQG) closed 3.29 per cent higher at the end of last week, finishing at $25.15. Analysts have called for Australia’s largest investment bank to cut more jobs, despite the bank already having shed more than 400 jobs internationally over the last six months. The calls come after Macquarie last week cut its full year guidance and reported a 24 per cent drop in first half profit, coming in below analyst expectations. The bank also unveiled a management shake-up on Friday and launched an $800 million on-market share buyback that analysts warn could be delayed. In the six months to September 30, 2011 Macquarie Group reported a net profit of $308 million.
Commodities
Gold is up $10.60 to $US1,747 an ounce for the December contract on Comex.
Silver is up $0.176 to $35.29.
Copper is up $0.002 at $3.71 a pound.
Oil is down $0.15 at $93.32 a barrel for November light crude in New York.
