The SPI is pointing to a steady start to the week for the Australian share market ahead of a busy week on the economic front and after mixed offshore leads. As European markets rose Wall Street dropped on Friday as the focus turned to this week’s US Presidential Election. Locally investors will absorb a series of economic reports today ahead of the Reserve Bank of Australia’s (RBA) monthly interest rate decision tomorrow.
US economic news
America’s latest monthly jobs report has come in better than expected as hiring rose while the unemployment rate edged up. The Labor Department has reported the US economy added 171,000 jobs in October, up from adding 114,000 jobs in September. The unemployment rate edged up to 7.9 per cent last month, from 7.8 per cent in September.
Figures
Wall Street finished a shortened trading week in the red on Friday: The Dow Jones Industrial Average lost 139 points to close at 13,093, the S&P500 lost 13 points to close at 1,414 and the Nasdaq lost 38 points to close at 2,982.
European markets lifted at the end of last week: London’s FTSE added 7 points, Paris added 17 points and Frankfurt added 28 points.
Asian markets also rose at the end of last week: Hong Kong’s Hang Seng added 289 points, Tokyo’s Nikkei added 104 and China’s Shanghai Composite added 13 points.
The Australian share mark retretreated from early gains on Friday to close the session flat and the week slightly lower: The S&P/ASX 200 Index added 3 points on Friday but finished the week 12 points lower at 4,460. On the futures market the SPI is now 3 points lower.
Currencies
The Australian Dollar at 8:00AM was buying $US1.034 cents, 64.62 Pence Sterling, 83.2 Yen and 80.7 Euro cents.
Economic news due out today Australian Bureau of Statistics: International trade in goods and services data and retail trade data for September
Australian Industry Group-Commonwealth Bank of Australia
(ASX:CBA): Performance of Services Index for October
TD Securities-Melbourne Institute: Inflation gauge for October
ANZ Bank Group
(ASX:ANZ): Job advertisements series for October
Dun and Bradstreet: Business expectations survey
Company news Westpac Banking Corporation’s
(ASX:WBC) annual cash earnings rose 5 per cent to $6.6 billion in fiscal 2012, which it says is a strong result is a lower growth economic environment. The bank’s full year net profit dropped 15 per cent to $5.97 billion, impacted by the tax implications of its acquisition of St George. CEO Gail Kelly has warmed volatility in global markets is likely to continue and the operating environment will remain challenging. A final fully franked of 84 cents per share has been declared, bringing the full year payout to $1.66. Shares in Westpac dipped 0.44 per cent on Friday to finish the week at $25.03.
The chief of AngloGold Ashanti Limited
(ASX:AGG) is reportedly looking at spinning off its Australian assets to take on Australia’s largest gold miner Newcrest Mining Limited
(ASX:NCM). CEO Mark Cutifani has told The Australian there is demand for an alternate investment to Newcrest. AngloGold Ashanti is understood to be looking for a third mine in Australia which could boost local production to about 1 million ounces annually. Shares in AngloGold Ashanti fell 1.54 per cent on Friday to finish the week at $6.41.
Ex-dividends today
Kathmandu Holdings Limited
(ASX:KMD) with a 5.55 cent fully franked dividend
Shenhua International Limited
(ASX:SHU) with a 2.5 cent unfranked dividend
Ex-dividends this week
Lindsay Australia Limited
(ASX:LAU) with a 0.5 cent fully franked dividend
ANZ Banking Group
(ASX:ANZ) with a 79 cent fully franked dividend
Desane Group Holdings Limited
(ASX:DGH) with a 1 cent unfranked dividend
National Australia Bank Limited
(ASX:NAB) with a 90 cent fully franked dividend
Tamawood Limited
(ASX:TWD) with a 13 cent fully franked dividend
Commodities
Gold is down $40.30 to $US1,675 an ounce for the December contract on Comex.
Silver is down $1.39 to $30.86 for December.
Copper is down $0.07 at $3.48 a pound.
Oil is down $2.23 at $US84.86 a barrel for December light crude in New York.
