The Australian share market is expected to dip in early trade, following a mixed session in the US after Standard & Poor's raised its outlook for the nation’s debt rating as well as lackluster economic data out of China.
China economic news
Over the weekend, China reported industrial output in May rose by 9.2 per cent on year, slightly weaker than the 9.3 per cent increase in April.
Meantime, China's fixed asset investment – which is a key measure of government spending -- increased 20.4 per cent from January through May compared with last year. The growth rate slowed slightly when compared to the first four months of the year.
Figures
Wall Street had a mixed session following big gains on Friday after a better-than-expected jobs report: The Dow Jones Industrial Average lost 10 points to close at 15,239, the S&P 500 dropped half a point to close at 1,643 and the NASDAQ added 5 points to close at 3,474.
European markets were also mixed: London’s FTSE lost 12 points, Paris shed 8 points and Frankfurt gained 53 points.
Asian markets again were mixed: Tokyo’s Nikkei rallied on the weaker yen, adding 637 points, Hong Kong’s Hang Seng lifted by 40 points, but China’s Shanghai Composite lost 30 points.
The S&P/ASX 200 index shed 44 points on Friday, with an overall weekly decline of 189 points, finishing at 4,738.
On the futures market the SPI is 17 points down.
Currencies
The Australian dollar has taken another dive after the greenback rallied on better than expected US jobs figures released over the weekend. At 7:15AM the Aussie was buying $US94.64 cents, 60.79 Pence Sterling, 93.54 Yen and 71.41 Euro cents.
Economic news
The Australian Bureau of Statistics will release housing finance data for April and NAB will put out its monthly business survey for May.
Company news
Virgin Australia Holdings Limited
(ASX:VAH) is considering flying its own long-range aircraft into Singapore, according to media reports. The airline is reportedly considering starting flights to Singapore or another major Asian destination to capitalize on Qantas' decision to shift its hub from Singapore to Dubai earlier this year. Shares in Virgin lifted 4.49 per cent on Friday, to close at 46.5 cents.
Leighton Holdings Limited
(ASX:LEI) has been taken off negative credit watch after S&P acted when Leighton's chairman and two other directors quit in March. Standard & Poor's has affirmed the construction giant's stable outlook and removed its negative credit watch. Shares in Leighton dropped 4 per cent on Friday to close at $16.32.
Ex-dividend Thorn Group Limited
(ASX:TGA) will pay 6 cents per share fully franked.
Commodities
Gold is up $3.00 to $US1,386 an ounce for the August contract on Comex. Silver is up $0.18 to $21.92 for July. Copper is down $0.03 at $3.24 a pound. Oil is down $0.26 at $US95.77 a barrel for July light crude in New York.
