After gaining 1.6 per cent in September and 7.1 per cent over the September quarter the local bourse looks set to start the new week and month in the red after US and European markets finished last week lower. Tepid trade is expected today as many Australian states break for a public holiday ahead of the Reserve Bank of Australia’s monthly interest rate decision tomorrow.
Economic news
Manufacturing activity in China has remained in contraction for the 11th consecutive month. According to a private survey from HSBC Holdings and Markit Economics the purchasing managers' index contracted to 47.9 in September from 47.6 the month before. A read below 50 indicates contraction. A separate report on China’s manufacturing is also due out today.
Figures
Wall Street posted a monthly gain for September and the September quarter, but dipped at the end of last week: On Friday the Dow Jones Industrial Average lost 49 points to close at 13,437, the S&P500 lost 6 points to close at 1,441 and the Nasdaq lost 20 points to close at 3,116.
European markets also closed lower at the end of last week: London’s FTSE lost 37 points, Paris lost 85 points and Frankfurt lost 74 points.
Asian markets ended mixed at the end of last week: Hong Kong’s Hang Seng added 78 points, Tokyo’s Nikkei lost 80 and China’s Shanghai Composite added 30 points.
The Australian share market finished Friday in positive territory but lost ground over last week: The S&P/ASX 200 Index added 3 points on Friday but lost 21 points over the week to finish September at 4,387. On the futures market the SPI is 19 points lower.
Currencies
The Australian Dollar at 7:30AM was buying $US1.036 cents, 64.23 Pence Sterling, 80.86 Yen and 80.71 Euro cents.
Economic news due out today
The Australian Industry Group and PricewaterhouseCoopers: Performance of manufacturing index for September
TD Securities and the Melbourne Institute: Inflation gauge for September
Dun and Bradstreet: Business expectations survey
Company news
A private exploration company has reportedly lodged a claim aimed at preventing Newcrest Mining Limited
(ASX:NCM) from expanding its $2 billion Cadia East project in New South Wales. According to the report Gold and Copper Resources claims Australia’s biggest gold miner is attempting to construct the mine over an area which it does not have a mining lease. A Newcrest mining spokesperson has told Fairfax Media it will vigorously defend the charges. Shares in Newcrest Mining rose 3.33 per cent on Friday to finish the week at $29.14.
Shares in VDM Group Limited
(ASX:VMG) closed almost 30 per cent higher on Friday after the engineering and construction company announced $56 million of new work. The latest awards include two contracts valued at $42 million from the Queensland Department of Transport and Main Roads. VDM says it remains bullish on opportunities within its operational sectors. Shares in VDM Group surged 26.92 per cent on Friday to finish the week at $0.033.
Commodities
The price of gold is up $0.50 to $US1,773.90 an ounce for the December contract on Comex.
Silver is down $0.09 to $34.58 for December.
Copper is down $0.01 at $3.76 a pound.
Oil is up $0.34 at $US92.19 a barrel for November light crude in New York.
