The SPI is pointing to a soft start to the session for the Australian share market amid uncertainty over Europe’s debt situation. European markets lifted as Greek politicians work to form a coalition government while US market closed mixed, encouraged by a fall in jobless claims. At home, while there is no local economic news scheduled, investors will be awaiting Chinese inflation figures expected this morning.
US economic data
The Labor Department has shown 367,000 people filed new jobless claims last week, down from 368,000 the week before.
The Commerce Department has reported the US trade deficit widened less than expected, to $US51.8 billion in March from $45.5 billion the month before.
Figures
Wall Street closed mixed on Thursday: The Dow Jones Industrial Average added 20 points to close at 12,855, the S&P500 added 3 points to close at 1,358 and the Nasdaq lost 1 point to close at 2,934.
European markets finished higher on Thursday: London’s FTSE added 14 points, Paris added 12 points and Frankfurt added 43 points.
Asian markets closed lower yesterday: Hong Kong’s Hang Seng lost 103 points, Tokyo’s Nikkei lost 35 and China’s Shanghai Composite added 2 points.
The Australian share market rose 0.5 per cent on the back of better than expected local jobs data yesterday, despite weaker than expected Chinese trade data . On Thursday the S&P/ASX 200 index added 20.5 and to close at 4,296. On the futures market the SPI is now 6 points lower.
Currencies
The Australian Dollar at 7:20AM was buying $US1.007 cents, 62.41 Pence Sterling, 80.51 Yen and 77.87 Euro cents.
Stocks to watch
ANZ Banking Group’s (ASX:ANZ) interest rate decision is due today, one week after the Reserve Bank of Australia (RBA) dropped the official interest rate by 50 basis points. ANZ reviews its variable home loan and small business interest rates on the second Friday of the month. Shares in ANZ traded ex-dividend yesterday, and closed 4.2 per cent lower at $22.15 on Thursday.
Shares in Northern Iron Limited (ASX:NFE) jumped yesterday amid reports India's Aditya Birla Group had launched a non-binding bid for the iron ore miner. Northern Iron entered into a trading halt before the market closed and responded to a price and volume query from the ASX in the evening, in which it confirms a subsidiary of Aditya Birla Group has submitted an indicative, non-binding proposal for the company. Shares in Northern Iron jumped 13.02 per cent yesterday, before entering into a trading halt, to finish at $1.09.
Ex-dividends next week
BT Investment Management Limited (ASX:BTT)
Westpac Banking Corporation (ASX:WBC)
Commodities
Gold is up $1.30 to $US1,595 an ounce for the June contract on Comex.
Silver is down $0.063 to $29.18 for July.
Copper is up $0.003 at $3.69 a pound.
Oil is up $0.27 at $97.08 a barrel for June light crude in New York.
