The Australian share market is expected to stay in positive territory in early trade today, but forecasts of a negative read on local jobs may take a toll on stocks.
US stocks closed mostly higher to extend their winning streaks, however big losses in Apple weighed on the technology stock benchmark.
Meantime US investors are already turning their attention to the Federal Reserve policy-setting meeting next week, with markets pricing in the rolling back of stimulus efforts.
Economic news
Back at home, the main driver of today’s market will be jobs data. The Australian Bureau of Statistics will release its labour force figures this morning. The unemployment rate is expected to have hit a four year high in August as businesses held off on hiring until after the federal election. The median forecast from a survey of economists, tips the unemployment rate will rise to 5.8 per cent, from 5.7 per cent in July. Unemployment hasn't been that high since August 2009.
Currencies
That local economic news is likely to impact the Australian dollar today, which has been hovering at three-month highs on strong China data. At 7:30AM the Aussie was buying $US93.32 cents, 58.99 Pence Sterling, 93.21 Yen and 70.12 Euro cents.
Figures
Wall Street pushed higher on a technical rally but the Nasdaq dipped: The Dow Jones Industrial Average gained 136 points to close at 15,327, the S&P 500 added 5 points to close at 1,689 and the NASDAQ dropped 4 points to close at 3,725.
European markets made moderate gains: London’s FTSE lifted by 4 points, Paris gained 2 points and Frankfurt jumped 49 points.
Asian markets were mixed: Tokyo’s Nikkei added 2 points, Hong Kong’s Hang Seng fell 40 points, and China’s Shanghai Composite gained 3 points.
The Australian share market inched closer to its 2013 high yesterday, buoyed by strong Chinese economic data and the easing of tensions in Syria. The S&P/ASX 200 index closed 33 points up to finish at 5,234. On the futures market the SPI is 12 points higher.
Company news
BlueScope Steel Limited
(ASX:BSL) has lost anti-dumping cases it pursued against large Chinese and Korean steel makers in an effort to reduce cheap imports, according to media reports. The Federal Government's Anti-Dumping Commission conducted an eight-month investigation into imports of hot rolled steel plate, clearing foreign firms such as Posco, Hyundai, Shandong Iron and Steel and Jinan Co. BlueScope says it is disappointed with the investigation’s result. Shares in BlueScope lifted three-quarters of a per cent (0.76 per cent) yesterday to close at $5.27.
Starpharma Holdings Limited
(ASX:SPL) says it has improved a drug that is mainly used to treat colon and colourectal cancer. The biotech’s company’s results showed that the enhanced drug was better at inhibiting tumours and reducing toxic side-effects than the non-enhanced drug. Shares in Starpharma shot up 5 per cent yesterday to close at $1.05.
Ex-dividend
Commodities
Gold is down $0.20 to $US1,364 an ounce for the December contract on Comex. Silver is up $0.16 to $23.17 for December. Copper is down $0.01 at $3.26 a pound. Oil is up $0.17 at US$107.56 a barrel for October light crude in New York.
