The Australian share market’s rally looks set to continue into the new trading week after US and European markets closed last week higher on the back of a better than expected US jobs report. On the local front there is no major economic news scheduled for release and many Australian states will start the week with a public holiday.
US economic news
An increase in hiring has pushed the US unemployment rate to its lowest level since the end of 2008. The Labor Department has reported the US economy added 236,000 jobs in February as the unemployment rate dropped to 7.7 per cent, both figures coming in better than expected.
Figures
Wall Street extended its weekly gain on Friday: The Dow Jones Industrial Average gained 68 points to close at 14,397, the S&P500 gained 7 points to close at 1,551 and the Nasdaq gained 12 points to close at 3,244.
European markets closed stronger at the end of last week: London’s FTSE added 44 points, Paris added 46 points and Frankfurt added 47 points.
Asian markets ended mixed at the end of last week: Hong Kong’s Hang Seng added 321 points, Tokyo’s Nikkei added 316 and China’s Shanghai Composite lost 6 points.
The Australian share market widened its weekly gain on Friday, adding 0.3 per cent: The S&P/ASX 200 added 14 points on Friday and 37 over the week to finish at 5,123. On the futures market the SPI is 20 points higher.
Currencies
The Australian Dollar at 8:00AM was buying $US1.02 cents, 68.46 Pence Sterling, 97.99 Yen and 78.61 Euro cents.
Company news
Ahead of News Corp’s (ASX:NWS, NASDAQ:NWS) planned mid-year split regulatory documents filed at the end of last week have revealed its newspaper and publishing unit will start operations with $US2.6 billion in cash and no debt. The unit has been referred to as the New News Corp and is understood to be valued at about $US18.6 billion with assets including the Wall Street Journal and British and Australian newspapers. Shares in News Corp rose 0.2 per cent on Friday to close the week at $29.48.
Australian Agricultural Company Limited
(ASX:AAC) has advised low rainfall in Northern Australia impacted sales last month and should the lack of rain continue it will incur a non cash mark-to-market impact.
The cattle producer says it will monitor weather closely to determine its March sales strategy and will update the market fully at the end of April with its interim results. Shares in Australian Agricultural Company fell 1.55 per cent on Friday to close the week at $1.27 before the announcement was made.
Commodities
Gold is up $1.80 to $US1,577 an ounce for the April contract on Comex.
Silver is up $0.14 to $28.95 for March.
Copper is down $0.01 at $3.51 a pound.
Oil is up $0.39 at $US91.95 a barrel for April light crude in New York.
