The Australian share market looks set for a cautious start to the day ahead of the Reserve Bank of Australia’s monthly interest rate decision this afternoon and as Melbourne celebrates the Melbourne Cup with a public holiday. Overnight European markets dipped while US markets edged higher ahead of the US presidential elections.
US economic news
The Institute for Supply Management’s services sector index dropped more than expected to 54.2 in October from a six month higher of 55.1 the month before, but remained above 50 which indicates expansion in the sector.
Figures
Wall Street ended on positive territory on Monday: The Dow Jones Industrial Average added 30 points to close at 13,123, the S&P500 added 3 points to close at 1,417 and the Nasdaq added 20 points to close at 3,002.
European markets started the week in the red: London’s FTSE lost 29 points, Paris lost 44 points and Frankfurt lost 37 points.
Asian markets also started the week lower: Hong Kong’s Hang Seng lost 105 points, Tokyo’s Nikkei lost 44 and China’s Shanghai Composite lost 3 points.
The Australian share market lifted from the red to start the week 0.3 per cent higher yesterday: The S&P/ASX 200 Index added 14 points on Monday to finish at 4,474. On the futures market the SPI is now 7 points lower.
Currencies
The Australian Dollar at 8:00AM was buying $US1.036 cents, 64.91 Pence Sterling, 83.21 Yen and 81.04 Euro cents.
Economic news due out today
Reserve Bank of Australia: November interest rate decision
Australian Bureau of Statistics: House price indexes for the September quarter
Australian Industry Group-Housing Industry Association: Performance of construction index for October
Company news Westpac Banking Corporation’s
(ASX:WBC) chief has urged the Reserve Bank of Australia to lower interest rates today in an effort to boost consumer sentiment. Speaking after the bank released its full year results yesterday, CEO Gail Kelly said if rates were not cut today the Central Bank will probably follow through with a cut next month. Westpac yesterday reported a 5 per cent lift in its annual cash earnings but a 15 per cent fall in its net profit, impacted by its acquisition of St George. Shares in Westpac Banking Corporation rose 1.28 per cent on Monday to end at $25.35.
Retail Food Group Limited
(ASX:RFG) has inked a deal to buy New Zealand based The Coffee Guy Group for about $4.4 million. The Coffee Guy is the largest mobile and portable coffee franchise system in New Zealand and adds to Retail Food Group’s brands including Donut King and Brumby’s Bakeries. Retail Food Group has flagged plans to introduce The Coffee Guy’s concept into the Australian marketplace. Shares in Retail Food Group fell 3.21 per cent on Monday to end at $3.02.
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
Westpac Banking Corporation
(ASX:WBC) with an 84 cent fully franked dividend
Commodities
Gold is up $8.00 to $US1,684 an ounce for the December contract on Comex.
Silver is up $0.27 to $31.13 for December.
Copper is down $0.01 at $3.47 a pound.
Oil is up $0.79 at $US85.65 a barrel for December light crude in New York.
