The Australian share market is set for a jump start to the trading week, following strong economic data from China and the US.
The run of data began on Sunday with China posting its biggest trade surplus in almost five years, as soaring exports ran ahead of modest import growth.
China economic news
In November, China's trade surplus rose to $33.8 billion from $31.1 billion the month before. Exports staged a rebound, rising 12.7 per cent from November last year.
Inflation figures for China will be out today followed by more economic data from the world’s second largest economic power tomorrow.
US economic news
Global investors were also buoyed by a strong jobs report in the US. Wall Street climbed on Friday after the US jobless rate dropped to a five-year-low of 7 per cent. That was down from 7.3 per cent in September, as the economy added 203,000 jobs.
Currencies
The Australian dollar has gained more than three-quarters of a US cent on that strong data out of China and the US. At 7:30AM the Aussie was buying $US91.32 cents, 55.91 Pence Sterling, 94.03 Yen and 66.6 Euro cents.
Figures
Wall Street rallied throughout its Friday session: The Dow Jones Industrial Average surged 199 points to close at 16,020, the S&P500 gained 20 points to close at 1,805 and the Nasdaq added 29 points to close at 4,063.
European markets followed suit: London’s FTSE lifted by 54 points, Paris added 29 points and Frankfurt jumped by 87 points.
Asian markets ended the last session of the week mixed after better-than-expected US growth data added to concerns the Federal Reserve will start to wind down its stimulus program. Tokyo’s Nikkei gained 122 points, Hong Kong’s Hang Seng added 31 points, and China’s Shanghai Composite dropped 10 points.
The Australian share market finished 0.2 per cent lower on Friday, weighed down by healthcare stocks. The S&P/ASX 200 index closed 12 points down on Friday extending the week’s losses of 134 points overall to finish at 5,186. But it looks like we will begin the week on a positive note as the SPI is 25 points up.
Economic news
ANZ Bank will release its job ads data for November today, but the major focus on the local economic data front this week will be the Australian job figures to be released by the ABS on Thursday. Economists are tipping the unemployment rate to remain steady at 5.7 per cent.
Company news
Qantas Airways Limited
(ASX:QAN) is likely to stay in the spotlight this week, with Shadow Treasurer Chris Bowen insisting the national carrier is ‘effectively’ too important to fail. Mr Bowen says Labor would be open to helping the airline, however the government has maintained that Qantas is a commercial operation that needs to get its finances in order. Shares in Qantas dropped 3.74 per cent on Friday to close at $1.03.
Rio Tinto’s Limited
(ASX:RIO) hopes of reviving its majority-owned Ranger uranium mine have been set-back after a toxic substance leakage on Saturday. Shares in the Rio Tinto subsidiary that operates the mine - Energy Resources of Australia Limited
(ASX:ERA) - may come under pressure this morning as federal and Northern Territory regulators conduct investigations. Shares in Rio Tinto lifted 0.62 per cent on Friday to close at $66.41.
Commodities
Gold is down $2.90 to $US1,229 an ounce for the February contract on Comex. Silver is down $0.05 to $19.52 for March. Copper is up $0.03 at $3.25 a pound. Oil is up $0.27 at US$97.65 a barrel for January light crude in New York.
