The SPI is pointing to a higher start to the day for the Australian share market, despite global markets pulling back after the release of weaker than expected Chinese and European economic data.
US economic news
The Labor Department has reported first-time unemployment benefit claims fell more than expected last week. 382,000 people filed first-time jobless claims last week, more than the forecast amount of 375,000 claims although 3,000 less than the week before.
Figures
Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 19 points to close at 13,597, the S&P500 lost 1 point to close at 1,460 and the Nasdaq shed 7 points, closing at 3,176.
European markets closed lower: London’s FTSE lost 34 points, Paris dropped 22 and Frankfurt is down by 1 point.
Asian markets also closed lower: Hong Kong’s Hang Seng lost 251 points, Tokyo’s Nikkei dropped 145 and China’s Shanghai Composite fell by 43 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 21 points down to finish at 4,397. On the futures market the SPI is 12 points up.
Currencies
The Australian Dollar at 7:20AM was buying $US1.043 cents, 64.35 Pence Sterling, 81.62 Yen and 80.46 Euro cents.
Company news
Commonwealth Bank of Australia (ASX:CBA) CEO Ian Narev has been enticed by a potential performance based bonus of $4.1 million in addition to his $1.84 million salary over the next four years. The strict performance criteria for Mr Narev’s payday is split between CBA’s overall share performance and its customer satisfaction against the other major banks. Shares in Commonwealth Bank finished 0.69 per cent lower yesterday at $54.97.
Despite standing down in May, former Boral Limited (ASX:BLD) chief Mark Selway is in line to attain $2.7 million worth of shares in addition to his $1.9 million termination payout. Mr Selway lost the support of the board after two and a half years in the top job, however was offered long term performance incentives to make him eligible for the shares. The valuable farewell gift will be awarded to Mr Selway in his absence should Boral meet performance targets in the next few years, although no incentives were awarded to him for fiscal 2012. Shares in Boral closed 2.07 per cent lower yesterday at $3.79.
Ex-dividends
SFG Australia (ASX:SFW) with a 1 cent full franked dividend,
Sigma Pharmaceutical Limited (ASX:SIP) has a 2 cent fully franked dividend,
Southern Cross Media Group (ASX:SXL) is offering a 5 cent dividend, fully franked.
Commodities
Gold is down $1.50 to $US1,770 an ounce for the December contract on Comex. Silver is up $0.09 to $34.68 for December. Copper is down $0.06 at $3.76 a pound. Oil is down $0.11 at US$91.87 a barrel for October light crude in New York.
