The Australian share market is headed for a flat start to the trading day, reversing yesterday’s losses after US stocks rebounded from mid-session lows to close higher as markets absorbed a sharp fall by the US dollar against the Japanese yen.
Claims for US unemployment benefits in the past week fell to 346,000 in-line with expectations. The data is seen as a preview of tonight’s US May non-farm payrolls report, which is likely to shape the US Federal Reserve's decision on whether to pull back on its QE program. About 12 million Americans still remain unemployed.
Figures
The Dow Jones Industrial Average gained 80 points to close at 15,041, the S&P 500 added 14 points to close at 1,623 and the NASDAQ was up by 23 points to close at 3,424.
European stock markets ended in the red after the European Central Bank kept interest rates on hold and lowered its growth outlook for the euro zone for 2013: London’s FTSE lost 83 points, Paris shed 38 points and Frankfurt fell by 97 points.
Asian markets were also down: Tokyo’s Nikkei lost 111 points, Hong Kong’s Hang Seng shed 231 points, and China’s Shanghai Composite was down by 25 points.
The Australian share market closed 1.1 per cent down yesterday, taking a sharp drop just before close on the back of a late sell off.
The S&P/ASX 200 index closed 54 points down to finish at 4,781.
On the futures market the SPI is 3 points higher.
Currencies
The Australian dollar jumped sharply higher in a volatile morning of trade as the greenback dropped against the yen. At 7:20AM the Aussie was buying $US95.96 cents, 61.54 Pence Sterling, 93.21 Yen and 72.46 Euro cents.
Economic news
The Australian Industry Group and Housing Industry Association will today release its performance of construction index for May
Company news
Woolworths Limited
(ASX:WOW) is considering its options after the ACCC rejected its plans for a new supermarket in Sydney’s west. The supermarket chain may challenge the ACCC, which ruled it already has a store in the same suburb. Shares in Woolworths closed 0.74 per cent lower yesterday at $32.08.
Air NZ
(ASX:AIZ) has made an application to the Foreign Investment Review Board seeking permission to raise its stake in Virgin Australia Holdings Limited
(ASX:VAH) to 26 per cent, according to media reports. The move comes after the new Zealand-based airline confirmed it’s lifted its Virgin Australia stake to 23 per cent, from 20 per cent, and has sparked speculation Air NZ may be readying itself to attempt a Virgin Australia takeover. Air New Zealand shares jumped 2.07 per cent yesterday to close at $1.24.
Ex-dividend
ALS Limited
(ASX:ALQ) will pay 27 cents per share partially franked
PTB Group Limited
(ASX:PTB) will pay 5.1 cents per share fully franked
Transmetro Corporation Limited
(ASX:TCO) will pay 5 cents per share fully franked
Tower NZ
(ASX:TWR) will pay 3.55 cents per share unfranked
Commodities
Gold is up $17.30 to $US1,416 an ounce for the August contract on Comex. Silver is up $0.23 to $22.71 for July. Copper is down $0.05 at $3.32 a pound. Oil is up $1.02 at $US94.76 a barrel for July light crude in New York.
