Following a weekly gain of 1 per cent the Australian share market is bracing to retreat after Wall Street dropped on Friday. The nation’s monthly jobs report was initially well received but US investors wiped most of the week’s gains as a tech stock sell-off accelerated. The Nasdaq sank 2.6 per cent while the Dow and S&P 500 fell about 1 per cent as investors considered how the report will impact monetary policy.
In the week ahead attention will turn to the US Federal Reserve’s meeting minutes on Wednesday and Chinese trade data due on Thursday. Closer to home Australians will get a read on business confidence and conditions tomorrow and consumer confidence and housing finance Wednesday ahead of our own monthly jobs report on Thursday.
US economic news
The US Labor Department reports the American economy created 192,000 jobs in March, spurred by growth in the private sector, after rising 197,000 in February. The unemployment rate held steady at 6.7 per cent in March.
Global markets
Wall Street sank steeply on Friday: The Dow Jones Industrial Average fell 160 points to close at 16,413, the S&P 500 tumbled 24 points to close at 1,865 and the Nasdaq plunged 110 points to close at 4,128.
European markets gained almost 2 per cent over last week while also rising on Friday: London's FTSE 100 Index gained 46 points, France's CAC 40 gained 35 points and Germany's DAX gained 67 points.
Asian markets also had a positive week but closed mixed on Friday: Japan’s Nikkei slipped 8 points, Hong Kong’s Hang Seng dipped 55 points, and China’s Shanghai Composite lifted 15 points.
The Australian share market rose in anticipation of an upbeat US jobs report at the end of last week: The S&P/ASX 200 Index added 13 points on Friday to widen the weekly gain of 56 points and close at 5,423. On the futures market the SPI is pointing 41 points down.
Currencies
After rising above $US0.93 on Friday the Australian dollar at 7:30am this morning was buying $US0.9288, 56.04 Pence Sterling, 95.96 Yen and 67.81 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Overseas arrivals and departures data for February
ANZ Banking Group
(ASX:ANZ): Job advertisements series for March
Australian Industry Group/Housing Industry Association: Performance of construction index (PCI) for March
Company news
BKI Investment Company Limited
(ASX:BKI) has expanded its portfolio through the acquisition of an unlisted investment company with net assets of about $4 million. BKI will pay for the company with its own shares and says it is looking forward to engaging in similar transactions in the future. BKI CEO Tom Millner says the private company has been a long term investor for 50 years and developed a portfolio of investments complementary to BKI’s existing portfolio. Shares in Bki Investment Company rose 0.31 per cent on Friday to close at $1.615 before the announcement was made.
Infratil Limited (ASX:IFZ, NZE:IFT) has lowered its earnings expectations, blaming softer New Zealand energy and public transport markets. The dual–listed New Zealand-based infrastructure investment company also blamed the impact of a weaker Australian dollar on its earnings. As a result the company’s unaudited earnings rest at the lower end of previous guidance. Shares in Infratil last traded at $2.01.
Ex-dividends today
Harvey Norman Holdings Limited
(ASX:HVN) paying a 6 cent fully franked dividend
Nufarm Limited
(ASX:NUF) paying a 3 cent fully franked dividend
SDI Limited
(ASX:SDI) paying a 0.2 cent fully franked dividend
Ex-dividends this week
PPK Group Limited
(ASX:PPK) paying a 1.5 cent fully franked dividend
Brickworks Limited
(ASX:BKW) paying a 14 cent fully franked dividend
Cadence Capital Limited
(ASX:CDM) paying a 5 cent fully franked dividend
TPG Telecom Limited
(ASX:TPM) paying a 4.5 cent fully franked dividend
Premier Investments
(ASX:PMV) paying a 20 cent fully franked dividend
Commodities
Gold has risen $19.00 to $US1,303.20 an ounce for the June contract on Comex.
Silver has lifted $0.14 to $19.95 for May.
Copper has firmed $0.03 to $3.02 a pound.
Oil has gained $0.85 to $US101.14 a barrel for May light crude in New York.
