Outlook: Aus shares look to Europe

Market Reports

The Australia share market looks poised for a weaker start to the week as all eyes remain firmly on Europe for developments on the region’s debt crisis. Uncertainty in Europe saw Wall Street’s major indexes shed around 2 per cent last week.

US economic news

The Labor Department reported that the unemployment rate eased last month, but less jobs were added than the month before. The unemployment fell from 9.1 per cent to 9 per cent in October, representing the lowest rate since April. In October employers added 80,000 jobs. September’s figure was revised higher to 158,000.

Figures

On Friday: The Dow Jones Industrial Average fell 61 points to close at 11,983, the S&P500 eased 8 points to close at 1,253 and the Nasdaq lost 12 point to close at 2,686.

European stocks fell on Friday: London’s FTSE was down 18 points, Paris was down 72 points and Frankfurt was down 167 points.

To Asian markets, stocks rose: Hong Kong’s Hang Seng was up 600 points, Tokyo Nikkei was up 161 and China’s Shanghai Composite was up 20.
 
At the end of last week the Australian share market snapped a four day losing streak and jumped 2.6 per cent: The S&P/ASX 200 Index advanced 109 points to close at 4,281. On the futures market the SPI is 27 points lower.
 
Currencies

The Australian Dollar at 8:40AM was buying $US1.0408, 64.77 Pence Sterling, 81.4 Yen and 75.31 Euro cents.

Economic news

Due out today from ANZ Banking Group (ASX:ANZ) is its job advertisements series for October and the Australian Industry Group and Housing Industry Association's performance of construction index for October.

Company news

At the end of last week shares in Centro Properties Group (ASX:CNP) closed steady at $0.036. The merger of Centro Retail Trust (ASX:CER) and Centro Properties Group (ASX:CNP) looks set to become the latest takeover target, according to Fairfax Media, now that bankers have agreed to a refinancing package which could see the company emerge as profitable. Investors are gearing up to cast their vote on the creation of Centro Retail Australia on November 22, which would form a new debt-free company worth more than $4 billion. The report tips Lend Lease Group (ASX:LLC), Colonial First State Asset Management and CFS Retail Property Trust (ASX:CFX) as potential buyers. In the 2011 financial year, Centro Properties Group reported a net profit of a net profit of $2.8 billion.

On Friday shares in Qantas Airways Limited (ASX:QAN) lifted 2.54 per cent to finish at $1.62. Unions have again lashed out at Qantas for giving away free flights to passengers impacted by the airline’s grounding, bringing the cost of the grounding to around $50 million. The unions are angry at the airline’s rising bill as Qantas goes into damage control to repair its image. In addition to promising it will refund all "reasonable losses" Qantas is hoping to win back a following through offering an estimated 70,000 affected customers free tickets to destinations in Australia or New Zealand.
In the 2011 financial year Qantas reported a net profit of $249 million.

Ex-dividends

Five companies are going ex-dividend today, among them are: Macquarie Group with a $0.65 unfranked dividend, Waterco with a $0.05 fully franked dividend and Westpac Banking Corporation with an $0.80 fully franked dividend. Among those coming up tomorrow: Desane Group and Kathmandu Holdings.

Commodities

Gold is down $9.00 to $US1,756 an ounce for the December contract on Comex.
Silver is down $0.41 to $34.80.
Copper is down $0.024 at $3.56 a pound.
Oil is up $0.19 at $94.26 a barrel for November light crude in New York.


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