Though the SPI is tipping a softer start for the Australian share market better than expected US economic news and Chinese trade data out over the weekend could give investors a boost. Despite lingering concern about the approaching US fiscal cliff the week will also bring a number of local and offshore economic outlooks.
US economic news
The latest read on US consumer sentiment has come in better than expected. The University of Michigan's preliminary consumer sentiment index increased to 84.9 in November from 82.6 the month before.
The Commerce Department has shown wholesale inventories rose more than expected, increasing 1.1 per cent to $US494.15 billion in September.
The Bureau of Labor Statistics has reported export prices increased 0.2 per cent in October from 0.7 per cent the month before while import prices rose 0.3 per cent in October from 0.2 per cent the month before.
Figures
Wall Street dropped over last week but ended in positive territory on Friday: The Dow Jones Industrial Average added 4 points to close at 12,815, the S&P500 added 2 points to close at 1,380 and the Nasdaq added 9 points to close at 2,905.
European markets finished mixed at the end of last week: London’s FTSE down 6 points, Paris added 16 points and Frankfurt lost 41 points.
Asian markets closed lower at the end of last week: Hong Kong’s Hang Seng lost 183 points, Tokyo’s Nikkei lost 80 and China’s Shanghai Composite lost 2 points.
The Australian share mark dropped 0.5 per cent on Friday but stayed steady over the week: The S&P/ASX 200 Index fell 22 points on Friday but finished the week 2 points higher at 4,462. On the futures market the SPI is now 15 points lower.
Currencies
The Australian Dollar at 8:15AM was buying $US1.039 cents, 65.43 Pence Sterling, 82.6 Yen and 81.84 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance figures for September
Reserve Bank of Australia: Credit card purchases for September
Company news Rio Tinto Limited
(ASX:RIO) has shrugged off concerns of a slowdown in Chinese growth and affirmed its confidence in demand for Australian commodities. The global mining company says there are signs of green shoots in the Chinese economy and recent data suggests China may have bottomed out. Rio has conceded China is showing short term slower growth but says fundamentals suggest a soft landing and a doubling in the economy by 2020. Rio has forecast Chinese steel production will grow to about 1 billion tonnes per annum heading to 2030. Shares in Rio Tinto fell 1.11 per cent on Friday to finish the week at $58.69.
Bank of Queensland Limited’s
(ASX:BOQ) annual report has revealed its CEO scored a half a million dollar bonus in the same year the bank posted a loss. The Brisbane-based regional lender paid CEO Stuart Grimshaw a total of $1.8 million in fiscal 2012. In the same period Bank of Queensland swung to a net loss of $17 million on the back of unrecoverable loans. Mr Grimshaw said on Friday, “The building blocks are in place for growth and the focus is now on execution and delivery.” Shares in Bank of Queensland Limited firmed 0.4 per cent on Friday to finish the week at $7.50.
Ex-dividends today
Australian Pharmaceutical Industries Limited
(ASX:API) with a 1.5 cent fully franked dividend
Onthehouse Holdings Limited
(ASX:OTH) with a 0.6 cent fully franked dividend
Waterco Limited
(ASX:WAT) with a 4 cent fully franked dividend
Zicom Group Limited
(ASX:ZGL) with a 0.55 cent unfranked dividend
Ex-dividends this week
Washington H. Soul Pattinson and Co. Limited
(ASX:SOL) with a 27 cent fully franked dividend
ResMed Inc.
(ASX:RMD) with a 1.7 cent unfranked dividend
Skywest Airlines Limited
(ASX:SXR) with a 1.02 cent unfranked dividend
Commodities
Gold is up $4.90 to $US1,731 an ounce for the December contract on Comex.
Silver is up $0.36 to $32.60 for December.
Copper is down $0.05 at $3.45 a pound.
Oil is up $0.98 at $US86.07 a barrel for December light crude in New York.
