The Australian share market looks set to weaken in early trade as investors shrug off a rebound on Wall Street and look towards local economic data with economists expecting lacklustre figures.
US stocks jumped after news that President Barack Obama would meet with House Democrats and House Republicans this week. But gains were constrained as investors looked for more signs of progress in the political budget stand-off.
Economic data
On our shores - all eyes will be on jobs data today with economists tipping the unemployment rate will remain at a four-year high for the second consecutive month. Official September job figures are expected to show the unemployment rate remains at 5.8 per cent.
The Westpac Melbourne Instittue will release its consumer inflation expectations survey for September today as well as employment expectations for October.
Figures
Wall Street made small gains: The Dow Jones Industrial Average added 26 points to close at 14,803, the S&P 500 gained 1 point to close at 1,656 and the NASDAQ lost 17 points to close at 3,678.
European markets declined as industrial production in August fell just over 1 per cent on the month. London’s FTSE lost 28 points, Paris shed 6 points and Frankfurt fell 39 points.
Asian markets were mixed: Tokyo’s Nikkei added 143 points, Hong Kong’s Hang Seng dropped 145 points, and China’s Shanghai Composite added 14 points.
The Australian share market recovered in afternoon trade yesterday to finish slightly ahead, as investors welcomed the first piece of optimistic news out of the US in 8 days, with Janet Yellen likely to succeed Ben Bernanke as Fed chairman. The S&P/ASX 200 index closed 4 points up to finish at 5,153. But we look set to lose that gain today with the SPI 23 points down.
Currencies
The Australian dollar pushed slightly higher after that news from the US. At 8:20AM the Aussie was buying $US94.46 cents, 59.22 Pence Sterling, 91.96 Yen and 69.85 Euro cents.
Company news
Worleyparsons Limited
(ASX:WOR) and Deloitte Australia have agreed to work together on major projects in the oil and gas, mining and infrastructure sectors. WorleyParsons chief executive officer Andrew Wood says the alliance is the next logical step after establishing their new ventures group. Shares in Worley Parsons fell 2.9 per cent yesterday to close at $22.10.
Woolworths Limited
(ASX:WOW) chief information officer Dan Beecham has resigned to take a role with British supermarket Morrisons, according to media reports. A search is reportedly underway for a replacement as Mr Beecham is set to start with Morrisons in January. Shares in Woolworths lifted 0.12 per cent yesterday to close at $34.
Ex-dividend Australian Infrastructure Fund Limited
(ASX:AIX) Naos Emerging Opportunities Company Limited
(ASX:NCC)
Commodities
Gold is down $17.40 to $US1,307 an ounce for the December contract on Comex. Silver is down $0.55 to $21.89 for December. Copper is down $0.06 at $3.23 a pound. Oil is down $1.88 at US$101.61 a barrel for November light crude in New York.
