The Australian share market is poised for a soft start after US markets posted a lacklustre end to last week and European stocks slipped. Suprisingly strong Chinese trade data could offer some support to the local miners.
Chinese economic news
China’s trade surplus widened last month as iron ore imports climbed to a 20-month high. China’s customs bureau has reported Chinese exports increased 9.9 per cent and imports increased 2.4 per cent, producing a trade surplus of $US27.67 billion in September. Chinese iron ore imports rose 4.1 per cent to 65.01 million tonnes in September, the most since January 2011.
US economic news
The University of Michigan and Reuters consumer sentiment index has hit a five month high, rising more than expected to 83.1 in October.
The Labor Department has shown producer prices increased more than expected last month, rising 1.1 per cent in September.
The Treasury Department has reported the US Government booked a $US1.1 trillion deficit in the 2012 financial year, the fourth consecutive year the US deficit has come in higher than $US1 trillion.
Figures
Wall Street posted a soft finish to last week: On Friday, The Dow Jones Industrial Average added 2 points to close at 13,329, the S&P500 lost 4 points to close at 1,429 and the Nasdaq lost 5 points to close at 3,044.
European markets finished in the red at the end of last week: London’s FTSE lost 36 points, Paris lost 25 points and Frankfurt lost 49 points.
Asian markets ended last week mixed: Hong Kong’s Hang Seng added 137 points, Tokyo’s Nikkei lost 13 and China’s Shanghai Composite added 2 points.
The Australian share market finished Friday in positive territory but lost 0.2 per cent over last week: The S&P/ASX 200 Index added 3 points on Friday but lost 8 points over the week to finish the week at 4,487. On the futures market the SPI is now 13 points lower.
Currencies
The Australian Dollar at 8:15AM was buying $US1.025 cents, 63.8 Pence Sterling, 80.4 Yen and 79.15 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance for August and new motor vehicles sales for October
Company news Energy infrastructure company APA Group
(ASX:APA) is a step closer to acquiring Hastings Diversified Utilities Fund
(ASX:HDF) with the company accepting its $1.4 billion takeover offer. APA now expects the offer to close on October 25, 2012 after the minimum acceptance condition was waived last week. APA was left as the sole bidder after Westpac-backed Pipeline Partners Australia withdrew its bid for Hastings in August. Shares in APA Group dipped 0.4 per cent on Friday, ending the week at $4.96.
Onthehouse Holdings Limited
(ASX:OTH) has inked a deal to buy Ad Network Pty Ltd by the end of this month. The real estate content provider says the acquisition will establish it as one of Australia’s largest real estate media companies with an online audience estimated at more than 4 million per month. Onthehouse has also announced it has swung to a net profit of $2.1 million in fiscal 2012, from a net loss of $1.8 million booked last year. Shares in Onthehouse Holdings rose 2.04 per cent on Friday, ending the week at $0.50.
Ex-dividends
Australian Masters Corporate Bond Fund No. 5 Limited
(ASX:AKY) with a $1.00 fully franked dividend
Australian Leaders Fund Limited
(ASX:ALF) with a $0.06 fully franked dividend
Cadence Capital Limited
(ASX:CDM) with an $0.08 fully franked dividend
Magellan Flagship Fund Limited
(ASX:MFF) with a $0.01, 26.3 per cent franked dividend
Nufarm Limited
(ASX:NUF) with a $0.03 fully franked dividend
Commodities
The price of gold is down $10.90 to $US1,760 an ounce for the December contract on Comex.
Silver is up $0.09 to $33.67 for December.
Copper is down $0.05 at $3.70 a pound.
Oil is down $0.21 at $US91.86 a barrel for November light crude in New York.
