After posting its worst weekly performance of this year and shedding 2.5 per cent last waeek, the Australian share market looks set for a steady start to the day. Global markets closed mixed at the end of last week as Wall Street saw strength from technology stocks but weakness in the banking sector after America’s biggest bank JPMorgan posted a $US2 billion trading loss.
US economic news
America’s consumer confidence has lifted more than expected this month and inflation stayed subdued last month: Reuters and the University of Michigan’s consumer sentiment index hit a four year high in May, lifting to 77.8 from 76.4 the month before. Meanwhile, the Labor Department's producer price index has shown wholesale prices dropped 0.2 per cent in April, the first fall this year and the biggest drop since October last year.
Figures
Wall Street closed mixed on Friday: The Dow Jones Industrial Average lost 34 points to close at 12,821, the S&P500 lost 5 points to close at 1,353 and the Nasdaq gained 0.18 points to close at 2,934.
European markets also closed mixed on Friday: London’s FTSE added 32 points, Paris lost 0.4 points and Frankfurt added 62 points.
Asian markets dropped on Friday: Hong Kong’s Hang Seng lost 263 points, Tokyo’s Nikkei lost 56 and China’s Shanghai Composite lost 15 points.
The S&P/ASX 200 index dropped 111 points over last week, and lost 11 points on Friday to finish the week at 4,285. On the futures market the SPI is now 2 points higher.
Currencies
The Australian Dollar at 7:15AM was buying $US1.002 cents, 62.36 Pence Sterling, 80.11 Yen and 77.65 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance figures for March
Stocks to watch
Pipeline operator APA Group (ASX:APA) has proposed to divest one of its key assets in order to score approval for its $1.1 billion takeover of Hastings Diversified Utilities Fund (ASX:HDF). APA says in order to address the competition regulator’s concerns it has suggested selling its Moomba to Adelaide Pipeline System. APA already holds a 20.7 per cent of Hastings Diversified and as the battle intensifies for complete control its target’s shares rose almost 5 per cent on Friday to close at $2.11. Shares in APA Group closed 0.6 per cent lower on Friday to finish the week at $4.97.
AGL Energy Limited (ASX:AGK) has been given the green light from the New South Wales Government to proceed with its construction of the $310 million Newcastle gas storage facility, expected to be finished by 2015. Critics of the facility claim it puts the region’s water supply at risk but AGL insists it has an ongoing hazard management plan. The energy provider says the facility will enable it to meet the growing demand for gas by the people and businesses of New South Wales. Separately, sources have told the Australian Financial Review AGL is likely to score approval of its buyout of its partners in Great Energy Alliance Corporation from Australia’s competition regulators when the decision is announced next Thursday. Shares in AGL Energy closed 0.3 per cent lower on Friday to finish the week at $14.50.
Ex-dividends
BT Investment Management Limited (ASX:BTT): 5.5 cent fully franked interim dividend
Westpac Banking Corporation (ASX:WBC): 82 cent fully franked interim dividend
Commodities
Gold is down $11.30 to $US1,584 an ounce for the June contract on Comex.
Silver is down $0.29 to $28.89 for May.
Copper is down $0.04 at $3.65 a pound.
Oil is down $0.95 at $96.13 a barrel for June light crude in New York.
