Returning from a four day Easter break the Australian share market looks to lift after Wall Street rose overnight. US stocks edged higher in light trade on Monday as investors stayed optimistic ahead of a week of corporate earnings releases.
Closer to home trading volumes are also likely to stay in holiday mode over the three trading days this week before the ANZAC day public holiday on Friday. On the local economic front the highlight of the week will be Wednesday’s inflation update for clues as to the Reserve Bank of Australia’s next move. Analysts expect consumer prices to have firmed 0.8 per cent over the March quarter for an annual inflation rate above 3 per cent.
Global markets
After gaining more than 2 per over last week Wall Street continued to rise on Monday: The Dow Jones Industrial Average gained 41 points to close at 16,449, the S&P 500 gained 7 points to close at 1,872 and the NASDAQ gained 26 points to close at 4,122.
Most European remained closed for the Easter break but ahead of the holiday moved slightly higher as well received Chinese growth figures offset concerns over tensions between Ukraine and Russia: On Thursday London's FTSE 100 added 41 points, France's CAC 40 added 26 points and Germany's DAX added 92 points.
Asian markets rose over last week buoyed by upbeat US economic and earnings reports and speculation China may implement measures to stimulate its economy. On Monday, Japan’s Nikkei lost 4 points, China’s Shanghai Composite fell 32 points and Hong Kong’s Hang Seng stayed close.
The Australian share market gained ground over the four trading days last week: The S&P/ASX 200 Index rose 34 points on Thursday, extending the weekly gain of 26 points to finish the week at 5,454. On the futures market the SPI is 11 points higher.
Currencies
Following a flat performance over last week the Australian dollar at 7:20am this morning was buying $US0.9329, 55.57 Pence Sterling, 95.74 Yen and 67.65 Euro cents.
Company news
Commonwealth Bank of Australia
(ASX:CBA) has upwardly revised its forecast for the Australian dollar and sees it heading toward parity with the greenback by next year. The bank predicts the Australian dollar will reach $US0.97 by the end of this year compared to an earlier forecast for it to fall to $US0.84. By March next year CBA expects the local currency to buy $US0.99 compared to an earlier forecast of $US0.85. The bank says it does not expect the US dollar to significantly strengthen until the real Fed Funds rate turns positive in early 2016. Shares in Commonwealth Bank of Australia gained 0.54 per cent on Thursday to end the shortened trading week at $77.57.
Customer satisfaction at National Australia Bank Limited
(ASX:NAB) remains below its rivals according to the latest survey from DBM Consultants Business Financial Services Monitor. The market research firm reports NAB’s average customer satisfaction rating came in at 7 out of 10 in March, down from a rating of 7.4 achieved by ANZ Banking Group
(ASX:ANZ), Westpac Banking Corporation
(ASX:WBC) and Commonwealth Bank of Australia
(ASX:CBA). NAB’s steady result from the prior month comes after the only back to improve its rating in February. Shares in National Australia Bank gained 0.51 per cent on Thursday to end the shortened trading week at $35.36.
Commodities
The price of gold lost almost $19.00 over last week and has continued to fall to $US1,288.50 an ounce for the June contract on Comex.
Silver has dropped $0.24 to $19.35 for May.
Copper has lost $0.002 to $3.04 a pound.
Oil has risen $0.07 to $US104.37 a barrel for May light crude in New York.
