The Australian share market looks set for a weak open, after Wall Street reflected a mixed bag of earnings reports and US economic growth data failed to meet expectations.
US economic news
The US Commerce Department reported first quarter growth of 2.5 per cent. That was above the previous quarter's level, but below the 2.8 per cent that was forecast.
On a brighter note, consumer spending in the US rose 3.2 per cent.
Figures
Wall Street had a mixed session on Friday: The Dow Jones Industrial Average rose 12 points to close at 14,713, the S&P500 lost 3 points to close at 1,582 and the Nasdaq lost 11 points to close at 3,279.
European markets were all in the red: London’s FTSE lost 16 points, Paris dipped by 30 points and Frankfurt lost 18 points.
Asian markets were mixed: Hong Kong’s Hang Seng added 147 points, Tokyo’s Nikkei lost 42 and China’s Shanghai Composite lost 21 points.
The Australian share market retreated from its early gains on Friday to finish slightly lower. The S&P/ASX 200 index closed 5 points down to finish at 5,098.
Over the week the index gained 166 points.
The SPI is down by 3 points.
Currencies
The Australian Dollar at 7.15AM was buying $US1.028 cents, 66.45 Pence Sterling, 100.79 Yen and 78.85 Euro cents.
Company news
The ACCC plans to look into the pending $3.4 billion Graincorp Limited
(ASX:GNC) takeover bid by US food giant Archer Daniels Midland, according to media reports. The competition regulator, which oversees port access arrangements for wheat exporters, will hold a public review if the transaction goes ahead, reports say. Farmers and rival grain handlers have raised concerns the deal may allow Archer to limit access to major loading facilities at Australian ports. Shares in Graincorp soared on the takeover news on Friday, closing 7.92 per cent higher at $12.81.
QBE Insurance Group Limited
(ASX:QBE) has issued a private placement of senior debt facilities to institutional investors in international markets. The global insurer says the placement of five-year senior bonds is worth $US600 million and has a fixed rate of 2.4 per cent per annum. The proceeds of the issue will be used to assist in funding the purchase of QBE's May 2010 senior convertible securities and for general corporate purposes. Shares in QBE closed 0.68 per cent lower on Friday at $13.17.
Ex-dividend
Oilfield Workforce Group Limited
(ASX:OFW) will pay 0.42 cents per share unfranked
Trust Company Limited
(ASX:TRU) will pay 18 cents per share fully franked.
Gold is down $8.40 to $US1,454 an ounce for the June contract on Comex. Silver is down $0.39 to $23.76 for May. Copper is up $0.06 at $3.18 a pound. Oil is down $0.64 at US$93.00 a barrel for June light crude in New York.
