The Australian share market is poised to make modest gains after US stocks snapped a six-day losing streak buoyed by promising jobs data.
US investors are anxious over the US Federal Reserve’s policy plans as well as rising tensions amid as Congress debates issues around the budget and debt ceiling. Politicians are grappling over a short-term spending bill to keep the government running when the next fiscal year starts on October 1.
US economic news
The number of Americans seeking new unemployment benefits remained near six-year lows last week, with the number of initial jobless claims falling 5,000 to a seasonally adjusted 305,000. The reading was lower than economists predicted.
Meantime, second-quarter gross domestic product was left unrevised at 2.5 per cent, on a seasonally adjusted annual rate.
But the number of Americans signing contracts to buy existing homes fell in August for the third straight month, by 1.6 per cent.
Currencies
The Australian dollar dropped as currency traders got jitters over those tense US budget negotiations. At 7:20AM the Aussie dollar was buying $US93.67 cents, 58.41 Pence Sterling, 92.71 Yen and 69.45 Euro cents.
Figures
Wall Street pushed higher for the first time in six sessions: The Dow Jones Industrial Average gained 55 points to close at 15,328, the S&P 500 added 6 points to close at 1,699 and the NASDAQ lifted 26 points to close at 3,787.
European markets wobbled on uncertainty emanating from the US: London’s FTSE rose 14 points, Paris fell 9 points and Frankfurt lost 1.5 points.
Asian markets were also mixed: Tokyo’s Nikkei added 179 points, Hong Kong’s Hang Seng shed 85 points, and China’s Shanghai Composite lost 43 points.
The Australian share market shook off a slow start to finish 0.4 per cent stronger yesterday, with the material sector leading the way. The S&P/ASX 200 index closed 19 points up to finish at 5,294. On the futures market the SPI is 10 points higher.
Company news
National Australia Bank Limited
(ASX:NAB) NAB-owned Clydesdale Bank has been fined 9 million British pounds after UK regulators found the bank failed to inform customers of their rights after making errors on thousands of home loan repayments. Clydesdale has apologized for the error and agreed to compensate all affected customers, costing it about 42 million pounds in total. Shares in NAB lifted 0.08 per cent yesterday to close at $35.33.
Wesfarmers Limited
(ASX:WES) says it sees future opportunities in its online business but says it will be disciplined about making any changes.In its annual report, managing director Richard Goyder says the business will look to develop and implement digital strategies to lift efficiency and enhance value for customers. Shares in Wesfarmers lifted 0.55 per cent yesterday to close at $41.81.
Ex-dividend
Auckland International Airport Limited
(ASX:AIA)
Commodities
Gold is down $12.10 to $US1,324 an ounce for the December contract on Comex. Silver is down $0.12 to $21.77 for December. Copper is up $0.03 at $3.31 a pound. Oil is up $0.37 at US$103.03 a barrel for November light crude in New York.
