Positive offshore leads look to lift the Australian share market this morning after US investors overlooked a disappointing read on first quarter GDP [gross domestic product] and focused instead on strong earnings results. At home there are a series of economic reports due today ahead of expectations the RBA [Reserve Bank of Australia] will cut rates at tomorrow’s May board meeting.
US economic news
The latest read on US growth has come in weaker than expected. The Commerce Department has reported gross domestic product increased at an annual rate of 2.2 per cent in the first quarter of this year, down from 3 per cent in the fourth quarter of last year coming in under forecasts for a rise of up to 2.5 per cent.
Figures
Wall Street ended last week stronger, rising for a fourth straight session on Friday: The Dow Jones Industrial Average added 24 points to close at 13,228, the S&P500 added 3 points to close at 1,403 and the Nasdaq added 19 points to close at 3,069.
European markets also closed higher at the end of last week: London’s FTSE added 28 points, Paris added 37 points and Frankfurt added 61 points.
Asian markets closed lower on Friday: Hong Kong’s Hang Seng lost 68 points, Tokyo’s Nikkei lost 41 and China’s Shanghai Composite lost 8 points.
The Australian share market pared gains on Friday, shedding 13 points or 0.3 per cent, to finish the week 4 points lower at 4,362. On the futures market the SPI is now 28 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.0464 cents, 64.31 Pence Sterling, 84.02 Yen and 79.05 Euro cents.
Economic news due out today
Reserve Bank of Australia: Financial aggregates data for March
TD Securities-Melbourne Institute: Inflation gauge for April
Housing Industry Association: New home sales for March
Socks to watch
Westpac Banking Corporation (ASX:WBC) has decided to cut its one and three-year home-loan rates tomorrow, taking the rates more into line with that of its banking rivals. The bank will make the move on the same day the Reserve Bank is being widely tipped to lower the official cash rate. Shares in Westpac dipped 0.35 per cent on Friday, closing at $22.59.
Takeover target Spotless Group Limited (ASX:SPT) is expected to today unveil a sweetened bid from its suitor, private equity fund Pacific Equity Partners. Speculation is mounting that the cleaning and catering company’s board has backed the offer of $2.71 per share, valuing the company at $719 million. Shares in Spotless Group last traded at $2.46.
Ex-dividends today
Henderson Group plc (ASX:HGG)
Waterco Limited (ASX:WAT)
Ex-dividends tomorrow
Betacash ETF Units (ASX:AAA)
Asian Centre For Liver Diseases (ASX:AJJ)
Commodities
Gold is up $3.80 to $US1,665 an ounce for the June contract on Comex.
Silver is up $0.14 to $31.35 for May.
Copper is up $0.05 at $3.81 a pound.
Oil is up $0.38 at $104.93 a barrel for May light crude in New York.
