The Australian share market is expected to tick up in early trade after US stocks led the way with modest gains on the back of positive economic data.
US economic data
A handful of better-than-expected economic reports gave US benchmarks a boost. The number of people applying for jobless benefits fell to 323,000 last week. That was below the 330,000 expected.
More good news came from the service sector, with the non-manufacturing purchasing managers' index for August rising to 58.9 from July's 56. The index was expected to slip to 55.
But investors are really looking ahead to the government's jobs report tonight as it’s a key indicator of when the Federal Reserve will start reducing monetary stimulus.
Currencies
The Australian dollar fell against a stronger greenback on that positive economic news. At 7:30AM the Aussie was buying $U91.33 cents, 58.58 Pence Sterling, 91.47 Yen and 69.61 Euro cents.
Figures
Wall Street made modest moves: The Dow Jones Industrial Average gained 7 points to close at 14,937, the S&P 500 added 2 points to close at 1,655 and the NASDAQ lifted 10 points to close at 3,659.
European markets made solid gains as the European Central Bank raised its forecast for economic growth in the region this year, but president Mario Draghi assured investors the ECB would maintain its policies: London’s FTSE jumped 58 points, Paris lifted by 26 points and Frankfurt added 39 points.
Asian markets were mixed as investors held fire ahead of that ECB decision after the markets closed, and the US employment report to be released tonight. Tokyo’s Nikkei added 11 points, Hong Kong’s Hang Seng jumped 272 points, and China’s Shanghai Composite lost 5 points.
The Australian share ended yesterday’s 0.4 per cent lower on fears of a potential strike on Syria. The S&P/ASX 200 index ended 19 points lower at 5,143.
On the futures market the SPI is 9 points higher.
Economic news
The Australian Industry Group and Housing Industry Association will release its performance of construction index (PCI) for August.
Company news
Rio Tinto’s Limited
(ASX:RIO) target of producing 360 million tonnes of iron ore each year is achievable, despite concerns about its Pilbara expansion, analysts say. The mining giant has been showing analysts around its port, rail and mine operations in the north of Western Australia this week, with analysts reportedly on board with Rio’s plans to reduce operating costs by $5 billlion by the end of 2014. Shares in Rio dipped 0.58 per cent yesterday to $61.19.
Perpetual Limited
(ASX:PPT) has shaken up its senior equities investment team, with the veteran Charlie Lanchester to depart. Mr Lanchester, deputy head of equities and one of the portfolio managers of the Perpetual Industrial Share Fund, will leave the funds management industry at the end of month. Shares in Perpetual fell 1.95 per cent yesterday to close at $38.68.
Commodities
Gold is down $17 to $US1,373 an ounce for the December contract on Comex. Silver is down $0.16 to $23.26 for December. Copper is flat at $3.24 a pound. Oil prices have risen sharply over the past few sessions on concerns about possible US military action in Syria. Oil is up $1.14 at US$108.37 a barrel for October light crude in New York.
Ex-dividend
Academies Australasia Group Limited
(ASX:AKG)
