The Australian share market looks set for a soft start ahead of a busy day and week of economic indicators, including the Reserve Bank of Australia’s monthly interest rate decision tomorrow and official domestic growth data due on Wednesday. At the end of last week global markets finished mixed while softer commodities prices could put pressure on the mining sector this morning.
US economic news
American manufacturing activity rose more than expected last month. The Institute for Supply Management's manufacturing index lifted to 54.2 in February, gaining from 53.1 the month before to the highest level since mid-2011.
Personal income dropped more than expected at the beginning of this year. The Commerce Department reported personal income pulled back 3.6 per cent and personal spending picked up in line with expectations, firming 0.2 per cent in January.
Figures
Wall Street rose at the end of last week, extending the weekly gain: The Dow Jones Industrial Average added 35 points to close at 14,090, the S&P500 added 4 points to close at 1,518 and the Nasdaq added 10 points to close at 3,170.
European markets closed mixed at the end of last week: London’s FTSE added 18 points, Paris lost 23 points and Frankfurt lost 34 points.
Asian markets also closed mixed at the end of last week: Hong Kong’s Hang Seng lost 140 points, Tokyo’s Nikkei added 47 and China’s Shanghai Composite lost 6 points.
The Australian share market trimmed its weekly gain on Friday, ending the first day of the month and the last day of the week in the red on Friday: The S&P/ASX 200 index fell 18 points on Friday, chipping into the weekly gain of 68 points to end at 5,086. On the futures market the SPI is 5 points lower.
Currencies
The Australian Dollar at 8:20AM was buying $US1.02 cents, 67.85 Pence Sterling, 95.61 Yen and 78.46 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Building approvals for January 2013 and business indicators for December quarter 2012
ANZ Banking Group
(ASX:ANZ): Job advertisements series for February
TD Securities - Melbourne Institute: Inflation gauge for February
Dun & Bradstreet: Business expectations survey
National Australia Bank Limited
(ASX:NAB): Quarterly Online Retail Sales Index
Company news
Rio Tinto Limited
(ASX:RIO) is reportedly considering divesting its Canadian iron ore assets. According to numerous media reports the global miner is hoping part or all of its 58.7 per cent stake in Canada's largest iron ore producer, Iron Ore Company of Canada, will fetch a price of up to $US1.7 billion. The reports come one month after Rio Tinto booked a net loss of $US2.9 billion and revealed $US14 billion of write downs. Shares in Rio Tinto closed 1.45 per cent lower on Friday, ending the week at $66.08.
Dual-listed dairy company Fonterra
(ASX:FSF) has been given the green light to develop a cheese plant and dairy ingredients plant in the Netherlands. Construction will occur as part of a partnership with Netherlands-based A-ware Food Group and is scheduled to be completed late 2014. Under the deal a greenfields site will be developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant. Shares in Fonterra closed 1.76 per cent lower on Friday, ending the week at $5.59.
Commodities
Gold is down $5.80 to $US1,572 an ounce for the April contract on Comex.
Silver is up $0.06 to $28.45 for March.
Copper is down $0.05 at $3.48 a pound.
Oil is down $1.37 at $US90.68 a barrel for April light crude in New York.
Ex-dividends
Corporate Travel Management Limited
(ASX:CTD) Fiducian Portfolio Services Limited
(ASX:FPS) SMS Management & Technology Limited
(ASX:SMX)
