The Australian share market looks poised for a positive start to the last session of the week. US investors overlooked disappointing jobs data and focussed instead on upbeat housing data and corporate earnings.
US economic news
The Labor Department has reported first-time unemployment benefits fell by 1,000 to 388,000 in the week ended April 21, but the figure remained at elevated levels for the third consecutive week.
The National Association of Realtors has shown pending home sales increased 4.1 per cent in March, lifting more than expected.
Figures
Wall Street finished higher on Thursday: The Dow Jones Industrial Average added 114 points to close at 13,205, the S&P500 added 9 points to close at 1,400 and the Nasdaq added 21 points to close at 3,051.
European markets closed mixed on Thursday: London’s FTSE added 30 points, Paris lost 4 points and Frankfurt added 35 points.
Asian markets also closed mixed yesterday: Hong Kong’s Hang Seng added 163 points, Tokyo’s Nikkei added 0.82 and China’s Shanghai Composite lost 2 points.
The Australian share market retreated from session highs to end 0.3 per cent up on Thursday: The S&P/ASX 200 Index added 15 points to finish at 4,375. On the futures market the SPI is 18 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.0386 cents, 64.23 Pence Sterling, 84.17 Yen and 78.63 Euro cents.
Stocks to watch
Macquarie Group Limited (ASX:MQG) will today release its full year results, having earlier forecast a 25 per cent profit drop. Analysts have also tipped Australia’s largest investment bank will today reveal more job losses as it struggles against weak global markets. Shares in Macquarie Group firmed 0.11 per cent yesterday to close at $28.43.
Renowned American hedge fund manager Jim Chanos has labelled Fortescue Metals Group Limited (ASX:FMG) as a ''value trap'' stock. According to Fairfax Media, Mr Chanos believes the Pilbara focused iron ore miner is, "a highly leveraged bet on continued fixed-asset investment growth in China" and its stock could drop "materially". Shares in Fortescue Metals Group fell 2.24 per cent yesterday to close at $5.68.
Ex-dividends next week
Henderson Group plc (ASX:HGG)
Waterco Limited (ASX:WAT)
Asian Centre For Liver Diseases (ASX:AJJ)
Commodities
Gold is up $18.20 to $US1,660 an ounce for the June contract on Comex.
Silver is up $0.85 to $31.00 for May.
Copper is down $0.07 at $3.77 a pound.
Oil is up $0.43 at $104.55 a barrel for May light crude in New York.
