The Australian share market is set for a cautious open, ahead of today’s RBA board meeting minutes and after a shaky Wall Street session overnight which saw stocks pull back from mid-session records to close lower amid a string of M&A news, including the Yahoo! takeover of Tumblr.
Figures
The Dow Jones Industrial Average lost 19 points to close at 15,335, the S&P 500 slipped by just 1 point to close at 1,666 and the NASDAQ lost 3 points to close at 3,496.
European markets ended the trading day in positive territory, however some markets were closed due to the Pentecost Holiday: London’s FTSE added 33 points, Paris gained 22 points and Frankfurt jumped by 58 points.
Asian investors were buoyed by Japan as the Nikkei share average surged to a fresh 5-and-a-half year high as the yen sank further and amid optimism about the growth outlook: Hong Kong’s Hang Seng added 410 points, Tokyo’s Nikkei gained 223 and China’s Shanghai Composite added 18 points.
The Australian share market pared back early gains to close 0.5 per cent higher. The S&P/ASX 200 index closed 28 points up to finish at 5,209.
On the futures market the SPI is 7 points higher.
Economic news
All eyes will be watching out for today’s release of the RBA board meeting minutes and its impact on the Aussie dollar.
Currencies
Currency analysts say there is a strong chance the minutes will point to the central bank’s concern about the Australia’s struggling economy, and this could weigh further on the shaky Australian dollar.
At 7:20AM the Australian dollar was buying $US98.15 cents, 64.36 Pence Sterling, 100.39 Yen and 76.19 Euro cents.
Company news
Leighton Holdings Limited
(ASX:LEI) says it will survive the mining services sector slowdown due to its diverse business interests. The construction giant told shareholders at its AGM that only five per cent of the company's revenue comes from iron ore and coal contracts and that is expected to continue into the future. Shares in Leighton jumped 3.66 per cent yesterday to close at $18.67.
Transfield Services Limited
(ASX:TSE) shareholders are bracing themselves for a potential earnings downgrade amid profit warnings from other mine services operators, with the company to hold an investor briefing today. At a recent presentation, the new managing director, Graeme Hunt, said the company was sensitive to market conditions, signaling the possibility of a downgrade. Shares in Transfield shed 1.54 per cent yesterday to close at $1.275.
Commodities
Gold is up $19.40 to $US1,384 an ounce for the June contract on Comex. Silver is up $0.23 to $22.58 for July. Copper is up $0.04 at $3.36 a pound. Oil is up $0.69 at $US96.71 a barrel for June light crude in New York.
