The Australian share market looks set to hover around the key 5,000 mark today after global markets ended mixed at the end of last week. As the US reporting season continues and the Australian one heats up company earnings reports will be in the spotlight this week. But with no major local economic or company news scheduled for today, investors may take a breather from last week’s gains ahead of a US central bank meeting and official jobs report later this week and a series of local economic, company and production reports due as the week ticks on.
US economic news
A read on US consumer sentiment has hit a six-year high. The University of Michigan and Thomson Reuters final index of consumer sentiment lifted to 85.1 in July from 84.1 at the end of June.
Figures
Wall Street recovered from earlier losses to finish on positive territory Friday: The Dow Jones Industrial Average added 3 points to close at 15,559, the S&P500 added 1 point to close at 1,692 and the Nasdaq added 8 points to close at 3,613.
European markets finished mixed at the end of last week: London’s FTSE lost 33 points, Paris added 13 points and Frankfurt lost 54 points.
Asian markets also ended mixed on Friday: Hong Kong’s Hang Seng added 68 points, Tokyo’s Nikkei sank 433 and China’s Shanghai Composite dropped 10 points.
The Australian share market rose 1.4 per cent over last week and remained above the key 5,000 mark. The S&P/ASX 200 index added 6 points on Friday, extending the weekly gain of 70 points to end at 5,042. On the futures market the SPI is 8 points higher.
Currencies
The Australian Dollar at 7:30AM was buying 92.58 US cents, 60.21 Pence Sterling, 90.9 Yen and 69.73 Euro cents.
Company news Doubt has been cast over Woodside Petroleum Limited’s
(ASX:WPL) role in the Leviathan offshore gas project in Israel. Media reports suggest the oil and gas giant’s involvement has been threatened because of uncertainty surrounding domestic gas export laws and questions over how much gas Israel should export. The projects operator Noble Energy is understood to have told investors at the end of last week the company was hoping the high court will clarify the policy confusion within the next weeks. Shares in Woodside Petroleum dipped 0.26 per cent on Friday to end the week at $37.78.
Myer Holdings Limited’s
(ASX:MYR) chief says the Reserve Bank of Australia’s interest rate cuts have failed to boost the retail sector. Speaking to the media Bernie Brookes says he has not seen a response by the customers despite Australia’s key cash rate now sitting at a record low of 2.75 per cent. Mr Brookes says there is a structural change going on in the Australian consumer which he has described as frugal, difficult, and harder to please. Shares in Myer Holdings gained 3.5 per cent on Friday to end the week at $2.66.
Ex-dividends today
Finbar Group Limited
(ASX:FRI) paying a fully franked dividend of 6 cents
Ex-dividends this week
RHG Limited
(ASX:RHG) paying a fully franked dividend of 3 cents
Singapore Telecommunications
(ASX:SGT) paying an unfranked dividend of 10 cents
Ozgrowth Limited
(ASX:OZG) paying a fully franked dividend of 1 cent
Westoz Investment Company Limited
(ASX:WIC) paying a fully franked dividend of 6 cents
Commodities
Gold is down $7.30 to $US1,321 an ounce for the August contract on Comex.
Silver is down $0.38 to $19.77 for September.
Copper is down $0.07 at $3.11 a pound.
Oil is down $0.79 at $US104.70 a barrel for September light crude in New York.
