Ahead of an Easter-holiday shortened week the Australian share market looks set to start the second quarter higher after gaining 7 per cent in the first three months of the year. At home eyes will be on a series of economic reports due out today before the central bank’s monthly decision on interest rates tomorrow.
China economic news
China’s manufacturing activity expanded more than expected last month, lifting for the fourth straight month. According to state-affiliated China Federation of Logistics and Purchasing the official purchasing managers index increased 2.1 points to 53.1 in March from 51 the month before. A read above 50 indicates expansion.
Banking company HSBC has reported Chinese factory output fell last month. Its PMI index for China came in at 48.3 in March, falling from 49.6. It was the fifth month the read came in under 50.
US economic news
Consumer spending in America has increased more than expected. The Commerce Department reported US purchases rose 0.8 per cent in February, the highest increase in seven months.
The Chicago Purchasing Managers' Index dropped to 62.2 in March from 64 the month before, coming in lower than expected but above 50 which indicates expansion.
The Thomson Reuters/University of Michigan Consumer Sentiment Index increased to 76.2 in March from 74.3 the month before, coming in higher than expected.
Figures
Wall Street finished mixed at the end of last week but posted its strongest quarter in more than two years:
The Dow Jones Industrial Average added 66 points to close at 13,212 on Friday and gained 8 per cent over the quarter.
The S&P500 added 5 points to close at 1,408 on Friday, the benchmark index gained almost 12 per cent over the quarter.
The Nasdaq lost 4 points to close at 3,092 on Friday and gained 19 per cent over the first three months of the year.
European markets finished higher on Friday: London’s FTSE added 26 points, Paris added 43 points and Frankfurt added 72 points.
Asian markets closed mixed on Friday: Hong Kong’s Hang Seng lost 54 points, Tokyo’s Nikkei lost 31 and China’s Shanghai Composite added 11 points.
The Australian share market posted a soft end of the week, but notched up a weekly gain of 1.5 per cent. The S&P/ASX 200 Index lost 3 points for on Friday, but gained 65 points over the week, to finish the first quarter at 4,335. On the futures market the SPI is 28 points stronger.
Currencies
The Australian Dollar at 8:00AM was buying $US1.0446 cents, 65.2 Pence Sterling, 86.69 Yen and 78.19 Euro cents.
Economic news due out today
The Australian Industry Group and PricewaterhouseCoopers: Performance of manufacturing index for March 2012
Reserve Bank of Australia: Index of commodity prices
Australian Bureau of Statistics: Building approvals for February
RP Data Rismark: House price index for March
TD Securities: Inflation gauge for March
Company news
Shares in Echo Entertainment Group Limited (ASX:EGP) firmed 0.23 per cent on Friday, closing at $4.39. Echo Entertainment has admitted to leaking company communication with the New South Wales government to the media ahead of an inquiry from the Independent Liquor and Gaming Authority starting today. The casino operator came under fire in February surrounding the circumstances that led to firing former Managing Director of The Star, Sid Vaikunta. Echo confirmed yesterday it had provided emails and text message details to the media, it says to protect its business interests after a sustained campaign against The Star. In the first half of its 2012 financial year Echo Entertainment Group reported a net profit of $70.2 million.
Shares in APA Group (ASX:APA) dipped 0.78 per cent on Friday, finishing at $5.10. Australia’s competition regulator has called for comment concerning Australia’s largest gas infrastructure business APA Group’s proposed takeover of pipeline owner Hastings Diversified Utilities Fund (ASX:HDF). APA launched an $841 million bid for all the shares it does not already own in Hastings at the end of last year. The Australian Competition and Consumer Commission has now called for comment on the transaction ahead of a deferred final decision due at the end of this month. Responding to the statement, APA says it is working with the ACCC to address the regulators issues and resolve outstanding concerns. In the first half of its 2012 financial year APA Group reported a net profit of $66 million.
Ex-dividends today
Australian Masters Corporate Bond Fund No 5 Limited (ASX:AKY)
Clime Capital Limited (ASX:CAM)
Ex-dividends tomorrow
Austbrokers Holdings Limited (ASX:AUB)
Gowing Bros. Limited (ASX:GOW)
Grange Resources Limited (ASX:GRR)
Matrix Composites & Engineering Limited (ASX:MCE)
Commodities
Gold is up $17 to $US1,672 an ounce for the June contract on Comex.
Silver is up $0.49 to $32.48 for May.
Copper is up $0.041 at $3.83 a pound.
Oil is up $0.24 at $103.02 a barrel for May light crude in New York.
