After dropping about 7.3 per cent per cent in May the Australian share market looks to follow global leads lower and start the first day of June in the red. Wall Street posted its worst monthly performance in two years in a period marked by concern for Europe’s debt situation. US markets also finished the last session of the month on a weak note with disappointing US economic data dragging on sentiment. At home investors will today eye local economic figures and China’s official manufacturing conditions, ahead of the US monthly jobs reports due tonight.
US economic news
Payroll services firm ADP has reported private-sector hiring added 133,000 jobs in May, below the 157,000 that was expected.
The Labor Department showed the number of Americans filing for first-time unemployment benefits hit a five year high last week, increasing more than expected to 383,000.
The Chicago Purchasing Managers Index dropped for a third straight month, coming in at 52.7 in May from 56.2 the month before and defying expectations for a rise.
US GDP growth has been revised lower: The Commerce Department says America’s economy grew at an annual rate of 1.9 per cent in the first three months of this year, down from the previous estimate of 2.2 per cent.
Figures
Wall Street continued to pull back on the last day of May: The Dow Jones Industrial Average lost 26 points to close at 12,393, the S&P500 lost 3 points to close at 1,310 and the Nasdaq lost 10 points to close at 2,827.
European markets closed mixed on Thursday: London’s FTSE added 10 points, Paris added 1 point and Frankfurt lost 16 points.
Asian markets finished lower yesterday: Hong Kong’s Hang Seng lost 61 points, Tokyo’s lost 90 and China’s Shanghai Composite lost 12 points.
The Australian share recovered from session lows yesterday, ending 0.4 per cent lower on Thursday. The S&P/ASX 200 index lost 18 and to close at 4,076. On the futures market the SPI is now 11 points lower.
Currencies
The Australian Dollar at 7:15AM was buying 97.27 US cents, 63.14 Pence Sterling, 76.22 Yen and 78.69 Euro cents.
Economic news due out today
Reserve Bank of Australia: Index of commodity prices for May
Australian Industry Group-PricewaterhouseCoopers: Performance of manufacturing index for May
May's best and worst performing stocks
Shares in Ramsay Health Care Limited (ASX:RHC) lifted 3.21 per cent yesterday, closing at $21.57 rising 7.7 per cent over the month of May. The stock price of Australia's biggest private hospital owner hit new highs last month, boosted by the company’s growth prospects and plans to expand its presence in Asia. Other gainers included News Corp (ASX:NWS), the media company’s share price rose 6.8 per cent in the same month it recorded a 47 per cent jump in its third quarter profit and bought a stake in a Chinese film distributor. AGL Energy Limited (ASX:AGK) rose 4.7 per cent in May while Coca-Cola Amatil Limited's (ASX:CCL) stock price improved 3.2 per cent.
Shares in Aquarius Platinum Limited (ASX:AQP) extended their decline yesterday, falling 6.98 per cent to close at $1.20 having dropped 45 per cent over May. The company’s Mimosa platinum mine in Zimbabwe was struck with a fire in the same month the country’s central bank reportedly ordered the suspension of services for some mining companies. The stock continued to be sold, despite Aquarius affirming its mine will bounce back to full production and will not been impacted by the Reserve Bank of Zimbabwe’s directive. Whitehaven Coal Limited (ASX:WHC) dropped 25 per cent in May, Toll Holdings Limited (ASX:TOL) was down 21 per cent and OneSteel Limited (ASX:OST) lost 19 per cent.
Ex-dividends on Monday
Campbell Brothers Limited (ASX:CPB)
Kathmandu Holdings Limited (ASX:KMD)
Technology One Limited (ASX:TNE)
Commodities
Gold is down $3.40 to $US1,560 an ounce for the June contract on Comex.
Silver is down $0.23 to $27.76 for July.
Copper is down $0.02 at $3.37 a pound.
Oil is down $1.29 at $86.53 a barrel for July light crude in New York.
