The SPI is suggesting the Australian share market looks to lift into a new week, despite Wall Street posting a soft finish after slightly better than expected US growth figures and disappointing earnings reports. European stocks gained on Friday despite the Spanish government revealing the nation’s unemployment rate hit a record high of 25 per cent in the September quarter. Locally it is a quite day on the economic front as Annual General Meeting's (AGM) continue to remain in focus.
US economic news
Ahead of next week’s US presidential election the latest figures have shown America’s economy grew more than expected in the three months to the end of September. The Commerce Department has reported the US economy grew at an annual pace of 2 per cent in the September quarter, from 1.3 per cent in the prior quarter. The latest growth rate was higher than expected but lower than analysts believe is necessary to curb unemployment.
Figures
Wall Street posted a lackluster finish to the end of last week: The Dow Jones Industrial Average added 4 points to close at 13,107, the S&P500 lost 1 point to close at 1,412 and the Nasdaq added 2 points to close at 2,988.
European markets gained at the end of last week: London’s FTSE added 2 points, Paris added 24 points and Frankfurt added 32 points.
Asian markets lost ground at the end of last week: Hong Kong’s Hang Seng lost 265 points, Tokyo’s Nikkei lost 122 and China’s Shanghai Composite lost 35 points.
The Australian share market fell 0.8 per cent on Friday to extend the week’s loss and end more than 2 per cent down over last week: The S&P/ASX 200 Index dropped 38 points on Friday to finish the week 90 points down at 4,472. On the futures market the SPI is now 18 points higher.
Currencies
The Australian Dollar at 8:15AM was buying $US1.036 cents, 64.41 Pence Sterling, 82.55 Yen and 80.11 Euro cents.
Economic news due out today Commonwealth Bank of Australia
(ASX:CBA): Business sales indicator for September
Company news BHP Billiton Limited
(ASX:BHP) is again embroiled in pay disputes with the global miner’s Illawarra Coal division now in the spotlight. The Australian says BHP’s Appin coal mine could be faced with a shut down after the miner refused to give 50 supervisors a 27 per cent base pay rise, citing a strong Australian dollar and softening coal prices. The news comes after reports emerged last week BHP is preparing to make staff cuts at its Australian nickel operations amid increasing costs and falling prices. Shares in BHP Billiton fell 1.48 per cent on Friday, finishing the week at $33.86.
Shares in Hawthorn Resources Limited
(ASX:HAW) surged on Friday ahead of announcement made after the market closed revealing a Chinese consortium has received regulatory approval to make a $15 million investment into the mining company. Australia’s Foreign Investment Review Board has given the green light for the investment which when completed will give the consortium a 13 per cent stake in Hawthorn Resources. Hawthorn Resources is a base metal and gold explorer focussed on exploration in Western Australia. Shares in Hawthorn Resources surged 28.57 per cent on Friday, ending the week at $0.009 before the announcement was made.
Ex-dividends today
Alcoa
(ASX:AAI) with a 2.46 cent unfranked dividend
CTI Logistics Limited
(ASX:CLX) with a 3.5 cent fully franked dividend
Harvey Norman Holdings Limited
(ASX:HVN) with a 4 cent fully franked dividend
Commodities
Gold is down $1.10 to $US1,712 an ounce for the December contract on Comex.
Silver is down $0.04 to $32.04 for December.
Copper is down $0.02 at $3.55 a pound.
Oil is up $0.19 at $US86.24 a barrel for December light crude in New York.
