The Australian share market’s winning streak could be under threat today. After three days of gains stocks look set for a muted start after Wall Street posted a soft end to a session filled with corporate earnings reports. However, upbeat economic figures from the euro-zone region gave European markets a boost and could offer some support locally. While no major economic news is scheduled for release a series of company reports are expected.
European economic news
The Markit Eurozone Composite Purchasing Managers Index rose more than expected to 50.4 points in July. A read above 50 indicates expansion and comes following a read in contraction territory of 48.7 points in June.
Chinese economic news
A report on manufacturing activity in the world’s second largest economy has disappointed. HSBC’s preliminary Purchasing Managers’ Index of Chinese manufacturing activity dropped to an 11-month low of to 47.7 in July from a final reading of 48.2 the month before.
US economic news
New home sales jumped to a five-year high in June. The National Association of Realtors reported new home sales rose 8.3 per cent to an annual rate of 497,000 in June.
US manufacturing has also posted an improvement. Markit’s Manufacturing Purchasing Managers Index lifted to a four-month high of 53.2 in July from 51.9 in June, remaining in expansion mode.
Figures
Wall Street put in a mixed performance on Wednesday: The Dow Jones Industrial Average ended 26 points lower at 15,542, the S&P 500 fell 7 points to close at 1,686 and the NASDAQ ended 0.3 points higher at 3,580.
European markets gained on the back of upbeat economic figures yesterday: London’s FTSE rose 23 points, Paris rose 40 points and Frankfurt rose 65 points.
Weak Chinese economic news weighed on Asian markets yesterday: Hong Kong’s Hang Seng lifted 54 points, Tokyo’s Nikkei eased 47 and China’s Shanghai Composite fell 11 points.
The Australian share market hit a two a two-month high yesterday and managed to remain above 5,000 following the release of local inflation data and Chinese manufacturing figures: The S&P/ASX 200 Index gained 18 points on Wednesday to end the session at 5,035.
On the futures market the SPI is 6 points higher.
Currencies
The Australian Dollar has remained weak against the greenback and at 7:20am this morning was buying 91.68 US cents, 59.88 Pence Sterling, 91.91 Yen and 69.46 Euro cents.
Companies to watch
Macquarie Group Limited
(ASX:MQG) annual general meeting
OceanaGold Corporation
(ASX:OGC) first half results
Newcrest Mining Limited
(ASX:NCM) quarterly results
OZ Minerals Limited
(ASX:OZL) June quarter report
Company news
SEEK Limited
(ASX:SEK) has flagged internal changes across its business.
The online jobs website has created a Managing Director role for its Product, Development and Strategy division to establish a single point of accountability for product delivery. The company has also combined SEEK Learning and SEEK Employment to reinforce the strategic fit between the two businesses. Shares in SEEK gained 0.76 per cent before the announcement was made yesterday to end the session at $9.31.
St. Barbara Limited
(ASX:SBM) achieved a 24 per cent increase in gold production in the June quarter, delivering more than 107,000 ounces.
While the mining company says its Australian operations performed well its Pacific operations fell short of expectations. Addressing this year’s plunge in the gold price St. Barbara believes its diversified nature allows for flexibility and adaptability to different gold price scenarios. Shares in St. Barbara ended steady at $0.65 before the announcement was made yesterday.
Ex-dividends
Mirrabooka Investments
(ASX:MIR) paying a fully franked dividend of 11.5 cents
Melbourne IT Limited
(ASX:MLB) paying a 75 per cent franked dividend of 25 cents
Commodities
Gold is down $15.00 to $US1,320 an ounce for the August contract on Comex.
Silver is down $0.23 to $20.02 for September.
Copper is down $0.02 at $3.18 a pound.
Oil is down $1.84 at US$105.39 a barrel for August light crude in New York.
