The Australian share market is expected to push back above 5000 points this week amid a relatively positive outlook for global stocks.
A strong open is expected for the local market today, after news China will lift controls on lending interest rates, allowing financial institutions to set them.
China economic news
The People’s Bank of China says the move will lower financing costs for businesses and support China's long-term economic restructure.
Currencies
The news pushed the Australian dollar higher. At 7:15AM the Aussie was buying $US91.84 cents, 60.2 Pence Sterling, 92.36 Yen and 69.97 Euro cents.
Figures
Wall Street had a subdued session on Friday: The Dow Jones Industrial Average lost 5 points to close at 15,544, the S&P500 added 3 points to close at 1,692 and the Nasdaq shed 24 points to close at 3,588.
European markets had a down day: London’s FTSE fell 4 points, Paris lost 2 points and Frankfurt shed 6 points.
Asian markets were mixed: Tokyo’s Nikkei dived by 219 points, Hong Kong’s Hang Seng added 17 points, and China’s Shanghai Composite lost 31 points.
The Australian share market ended a lacklustre week in the red. The S&P/ASX 200 index lost 21 points on Friday, to end 2 points down over the week at 4,972.
On the futures market the SPI is 21 points higher.
Company news
Commonwealth Bank of Australia
(ASX:CBA) is the most popular of the big four banks among business customers, a survey says. Westpac Banking Corp
(ASX:WBC) came in second, while Australia and New Zealand Banking Group
(ASX:ANZ) and National Australia Bank Limited
(ASX:NAB) trailed behind. Shares in CBA finished down 0.39 per cent on Friday at $71.46.
Yancoal Australia Limited
(ASX:YAL) chairman Li Weimin has left the miner's Chinese parent company, according to media reports. The move comes in the middle of the parent company's takeover bid for the local subsidiary and follows a series of financial losses for the group. Shares in Yancoal lifted 0.7 per cent on Friday to close at 72 cents.
Also to watch today Australian Foundation Investment Co Limited
(ASX:AFI) will release its full year results.
Ex-dividend Countplus Limited
(ASX:CUP) will pay 3 cents per share fully franked.
Commodities
Gold is up $2.10 to $US1,293 an ounce for the August contract on Comex. Silver is up $0.07 to $19.46 for September. Copper is down $0.02 at $3.14 a pound. Oil is up $0.01 at US$108.05 a barrel for August light crude in New York.
