The Australian share market looks set to open in positive territory despite mixed leads from Wall Street, with investors unsure what to make of the latest private sector jobs data ahead of a key unemployment report to be released later this week.
US economic news
US stocks slipped on news the economy added 175,000 private-sector jobs in January, down from the 227,000 rise in December and falling well short of expectations.
The ADP report comes ahead of official January jobs data in the US, which is due on Friday night local time.
Meantime, the services sector seems to be in recovery mode, with the non-manufacturing purchasing managers' index rising to 54 in January from 53 in December
Investors also took heart after ratings agency Moody's said the US would not default on its debt.
Figures
Wall Street dipped slightly: The Dow Jones Industrial Average lost 5 points to close at 15,440, the S&P 500 shed 4 points to close at 1,752 and the NASDAQ dropped 20 points to close at 4,012.
European markets were mixed: London’s FTSE added 9 points, Paris was relatively flat and Frankfurt lost 12 points.
Asian markets swung wildly. The Nikkei average rose 1.2 per cent, rebounding from a four-month low as investors swooped on beaten down stocks such as Panasonic and Toyota Motor following strong earnings reports. Tokyo’s Nikkei added 172 points, Hong Kong’s Hang Seng dropped 128 points, and China’s Shanghai Composite remained closed for the lunar new year.
The Australian share market closed just over half a per cent down yesterday, dragged by bluechips. The S&P/ASX 200 index closed 27 points down to finish at 5070. On the futures market the SPI is 14 points higher.
Currencies
The Australian dollar continues to hold its ground against the greenback amid global market calm and after the Reserve Bank of Australia declared interest rates would remain on hold in the near-term, removing any reference to the local currency being uncomfortably high . At 8:15AM the Aussie was buying $US89.17 cents, 54.69 Pence Sterling, 90.42 Yen and 65.89 Euro cents.
Economic news
The Australian Bureau of Statistics is set to release its latest retail trade figures as well as international trade in goods and services data for December.
NAB’s business confidence survey for the December quarter is also expected out.
Company news
Tabcorp Holdings Limited
(ASX:TAH) is set to post its first half financials today, as reporting season continues. The company posted a lift in first quarter earnings, however warned of tough external conditions. Shares in Tabcorp rose 0.3 per cent yesterday to close at $3.38.
Grocery giant Woolworths Limited
(ASX:WOW) is likely to be on the radar today when it releases its second quarter sales figures. Sales topped $15.5 billion in the first quarter. Shares in Woolworths lifted 0.68 per cent yesterday to close at $33.92.
Ex-dividend Country Road Limited
(ASX:CTY) will pay 17.9 cents per share fully franked and ERM Power Limited
(ASX:EPW) will pay 6 cents per share fully franked.
Commodities
Gold is up $5.70 to $US1,257 an ounce for the April contract on Comex. Silver is up $0.38 to $19.80 for March. Copper is up $0.01 at $3.19 a pound. Oil is up $0.19 at US$97.38 a barrel for March light crude in New York.
