Following a gain of 4.2 per cent in February the Australian share market is eyeing a positive start to March, with the benchmark index now up 1 per cent over the year so far. Though global markets ended mixed at the end of last week stocks rallied over the month with both the US and euro zone gaining more than 4 per cent. On Friday the S&P 500 even managed to hit another record close, despite growing concerns about political tensions between Ukraine and Russia.
Closer to home Australians will have a series of economic reports to digest this week. The Reserve Bank will steal the focus with tomorrow’s policy decision, with rates expected to remain on hold, and Australia’s growth figures will be the spotlight on Wednesday.
US economic news
The US economy increased at a slower rate than first estimated at the end of 2013. The Commerce Department has reported US gross domestic product expanded at an annual rate of 2.4 per cent in the fourth quarter, down from an initial read of 3.2 per cent and from 4.1 per cent in the prior quarter.
Chinese economic news
Following a week which saw China's benchmark stock index drop 2.7 per cent the government’s manufacturing gauge hit an eight-month low when released over the weekend. The National Bureau of Statistics says the PMI came in at 50.2 in February, down from 50.5 the month before but remaining above 50 which indicates expansion.
Global markets
Wall Street’s major indexes ended Friday mixed but climbed more than 1 per cent over the week: On Friday, The Dow Jones Industrial Average added 49 points to close at 16,322, the S&P 500 added 5 points to close at 1,859 and the NASDAQ lost 11 points to close at 4,308.
European markets also firmed over the week but finished Friday mixed: London's FTSE 100 Index slipped 0.57 points, France's CAC 40 rose 12 points and Germany's DAX added 104 points.
Asian markets closed mixed at the end of last week: Japan’s Nikkei lost 82 points, Hong Kong’s Hang Seng added 9 points, and China’s Shanghai Composite added 9 points.
The Australian share market ended a buoyant month of gains in the red at the end of last week: The S&P/ASX 200 index lost 6.6 points on Friday, widening the weekly loss of 33 points to finish at 5,405. On the futures market the SPI is 21 points higher.
Currencies
The Australian dollar gained more than 2 per cent over February, hitting a peak of $US0.9081 following the RBA’s meeting minutes, released on February 18. At 7:30AM the Aussie dollar was buying $US0.8901, 53.25 Pence Sterling, 90.87 Yen and 64.7 Euro cents.
Economic news due out today
Australian Industry Group: Performance of Manufacturing Index
Housing Industry Association: New home sales
RP Data: Dwelling prices
Company news
ANZ Banking Group’s
(ASX:ANZ) chief has offloaded $17.3 million worth of shares in the company to partially fund a property purchase in Australia. The bank advises CEO Mike Smith sold more than 500,000 shares on Friday but still holds more than 900,000 ANZ shares and more than 850,000 performance rights. The sale came as ANZ shares edged to record highs having hit a peak of around $34 at the end of last year. Shares in ANZ Banking Group eased 0.03 per cent on Friday following the announcement to end the week at $32.14.
Advertising veteran John Singleton and venture capitalist Mark Carnegie have sold an interest in Fairfax Media Limited
(ASX:FXJ) through their investment vehicle Gutenberg. A change in substantial holding notice filed with the ASX after the market closed on Friday shows the 0.15 per cent stake was sold on market for 94 cents per share, generating about $3.1 million. The sales comes following a failed tie-up between Macquarie Radio Network Limited
(ASX:MRN) and Fairfax Radio. Shares in Fairfax Media gained 0.53 per cent on Friday to end the week at $0.945, before the announcement was released.
Commodities
Gold has lost $10.20 to $US1,321.60 an ounce for the April contract on Comex.
Silver has lost $0.11 to $21.24 for March.
Copper has added $0.01 to $3.19 a pound.
Oil has lifted $0.19 to $US102.59 a barrel for April light crude in New York.
Ex-dividends
Australian Ethical Investment Limited
(ASX:AEF) Century Australia Investments Limited
(ASX:CYA) SMS Management & Technology Limited
(ASX:SMX)
