The Australian share market is set to open higher after offshore markets recovered overnight, following the biggest weekly decline this year.
US economic news
Consumer credit figures have soared in the US by $US21.3 billion in March, the highest level in more than a decade, according to Federal Reserve figures.
Figures
Wall Street closed down yesterday: The Dow Jones Industrial Average lost 30 points to close at 13,009, the S&P500 gained 0.5 points to close at 1,370 and the Nasdaq is up by 1 point to close at 2,958.
European markets closed mixed: London’s FTSE lost 111 points, Paris gained 52 and Frankfurt gained 8 points.
Asian markets closed down: Hong Kong’s Hang Seng lost 549 points, Tokyo’s Nikkei is down by 261 and China’s Shanghai Composite is flat.
The S&P/ASX 200 Index closed 95 points down to finish at 4,301. On the futures market the SPI is 33 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.021cents, 63.02 Pence Sterling, 81.52 Yen and 78.16 Euro cents.
Economic news
The Australian Government will release its Federal budget with expectations it will deliver a surplus. Also out today, International trade in goods and services for March from The Australian Bureau of Statistics.
Stocks to watch
Commonwealth Bank of Australia (ASX:CBA) has announced the resignation of group executive, retail banking services, Ross McEwan. Mr McEwan will leave the bank later this year. A replacement is yet to be appointed. The news follows 100 redundancies from the banks softening mortgage business yesterday.Shares in CBA closed 1.06 per cent down yesterday at $52.06.
The World Bank is reportedly planning to invest in Rio Tinto’sLimited (ASX:RIO) Simandou iron ore project in Guinea. According to The Australian, The World Bank will invest $147.6 million in the project, which also includes partnerships with China’s Chalco. The bank holds a 5 per cent interest in the project and says the additional investment was “to help cover costs as the project continues in its development”. Shares in Rio Tinto closed 4.48 per cent down yesterday at $62.00
Ex-dividends
Four companies are going ex-dividend today:
ALCOA CDI ( ASX:AAI)
Koon Holdings Limited (ASX:KNH)
Tamawood Limited(ASX:TWD)
United Overseas Australia Limited ( ASX:UOS)
Commodities
Gold is down $6.10 to $US1,639 an ounce for the June contract on Comex.
Silver is down $0.31 to $30.12 for July.
Copper is up $0.05 at $3.77 a pound.
Oil is down $0.55 at $97.94 a barrel for June light crude in New York.
