The Australian share market is set to begin the trading day in the red, after Wall Street stocks fell on a disappointing jobs report.
US economic news
Payrolls firm ADP reported that the US private sector added just 119,000 jobs in April, reflecting the slowest job growth in seven months
Figures
The Dow Jones Industrial Average lost 139 points to close at 14,701, the S&P 500 was down 15 points to close at 1,583 and the NASDAQ lost 30 points to close at 3,299
European markets were mixed: London’s FTSE gained 21 points, Paris lost 12 points and Frankfurt added 40 points.
Asian markets were also mixed: Hong Kong’s Hang Seng added 156 points, Tokyo’s Nikkei lost 62 and China’s Shanghai Composite lost 21 points when it last traded prior to the May Day holiday.
The Australian share market closed 0.5 per cent down yesterday. The S&P/ASX 200 index closed 25 points lower to finish at 5,166.
On the futures market the SPI is 24 points down.
Currencies
The Australian Dollar at 7:20AM was buying $US1.028 cents, 66.1 Pence Sterling, 100.13 Yen and 78 Euro cents.
Economic news
The Australian Bureau of Statistics will today release building approvals data for March and international trade price indexes for the March quarter.
Company news
Wesfarmers Limited
(ASX:WES) owned Coles has raised $532 million through the sale of majority ownership of 19 shopping centres as part of a joint venture with super fund ISPT. The deal will deliver Coles net proceeds of $400 million, with the retailer retaining a 25 per cent stake in the partnership, allowing it property development and management rights. Coles finance director Rob Scott says the joint venture means Coles has secured a long-term property partner with closely aligned commercial interests. While the news was released after market close, shares finished the day of trade down 0.97 per cent yesterday to $42.95.
Arrium Limited
(ASX:ARI) is considering selling or exiting businesses in its loss-making steel division, according to media reports. Incoming chief executive Andrew Roberts reportedly told a Sydney conference that the steel-making business has been hit by the high Australian dollar and weak demand for construction. Mr Roberts reaffirmed that Arrium is considering divesting or exiting non-integrated business, adding that cash generation and cost cutting are also major priorities. Shares in Arrium closed 1.18 per cent lower yesterday at $0.84.
Ex-dividend
Asian American Medical Group Limited
(ASX:AJJ) will pay 0.1 cent per share unfranked
Bank of Queensland Limited
(ASX:BOQ) will pay 28 cents per share fully franked
LongReach Group Limited
(ASX:LRG) will pay 30 cents fully franked
Commodities
Gold is down $25.90 to $US1,446 an ounce for the June contract on Comex. Silver is down $0.84 to $23.34 for July. Copper is down $0.11 at $3.08 a pound. Oil is down $2.43 at $US91.03 a barrel for June light crude in New York.
