The Australian stock market looks set for a quiet start to the trading week ahead of tomorrow’s monthly interest rate call from the Reserve Bank. Local stocks finished slightly in the red on Friday, the major news was a sharp fall in GrainCorp shares after the federal government blocked a foreign takeover of the nation's largest grain handler. The local market is absent any major leads with Friday's trade on Wall Street shortened by the Thanksgiving holiday.
Chinese economic news
The National Bureau of Statistics says that China's manufacturing growth in November maintained its strong pace from the previous month to stay at a 19-month high. The purchasing managers' index (PMI) was at 51.4, unchanged from October. The index was up from 51.1 in September and the highest since reaching 53.3 in April 2012. A reading above 50 signals expansion while a figure below indicates contraction. The figure was a further indication that the world's second-largest economy is gradually emerging from a growth slowdown at the start of the year.
Figures
Wall Street closed mixed on its shortened trading day Friday: The Dow Jones Industrial Average lost 11 points to close at 16,086, the S&P500 lost 1 point to close at 1,806 and the Nasdaq added 15 points to close at 4,060.
European markets also closed mixed: London’s FTSE lost 4 points, Paris lost 7 points and Frankfurt added 18 points.
Asian markets also finished mixed: Tokyo’s Nikkei lost 65, Hong Kong’s Hang Seng added 92 points, and China’s Shanghai Composite added 1 point.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 14 points down to finish at 5,320. On the futures market the SPI is 9 points down.
Currencies
The Australian Dollar at 8:20AM was buying $US0.9135 cents, 55.82 Pence Sterling, 93.67 Yen and 67.27 Euro cents.
Economic news
Due out today:
The Reserve Bank will release its index of commodity prices.
The Australian Bureau of Statistics will release October building approvals data and its September Business Indicators figures.
AiG will release its November Performance of Manufacturing index.
The RP Data-Rismark House Price Index for November is due.
The TD Securities inflation gauge for the same month is also expected.
Company news
Grocery wholesaler Metcash Limited
(ASX:MTS) wil post its half year results today, in a period of adversity up against supermarket heavyweights Coles and Woolworths, their heavy discounts and cheap petrol offers. The company is expected to post a drop in its earnings resulting from a loss of market share in its food and grocery division, however its liquor business and hardware divisions are expected to deliver a strong performance. Shares in Metcash Limited
(ASX:MTS) closed 0.33 per cent down on Friday at $3.05.
Treasurer Joe Hockey’s decision to block US giant Archer Daniels Midland’s takeover of Graincorp Limited
(ASX:GNC) has been labelled as silly and short-term by Australian Workers' Union boss Paul Howes. Mr Howes has accused Prime Minister Tony Abbott and Hockey of putting the unity of government ahead of the national interest by scuttling the drawn out tilt at GrainCorp on Friday. Mr Howes was behind the buyout, saying although it would cause some short-term pain for his union members, they would be outweighed by the long-term gains to the agribusiness sector. Shares in Graincorp Limited
(ASX:GNC) closed 22.14 per cent down on Friday at $8.72.
Ex-dividends BT Investment Management Limited
(ASX:BTT): 10 cents, 50 per cent franked.
FFI Holdings Limited
(ASX:FFI): 25 cents, fully franked.
Fisher & Paykel Healthcare Corp Limited
(ASX:FPH): 4.83 cents, unfranked.
Technology One Limited
(ASX:TNE): 3.83 cents, 85 per cent franked.
Commodities
Gold is up $12.80 to $US1,251 an ounce for the January contract on Comex. Silver is up $0.35 to $20.00 for January. Copper is up $0.03 at $3.23 a pound. Oil is up $0.42 at US$92.72 a barrel for January light crude in New York.
