The Australian share market is set to slip into the new week after global markets fell at the end of last week amid renewed concerns about tensions between Ukraine and Russia. Wall Street’s major indexes erased the week’s earlier gains with the Nasdaq index sinking 1.75 per cent on Friday as investors questioned growth potential of tech stocks.
In the week ahead attention will remain on the US Federal Reserve amid expectations America’s central bank will announce more tapering of its economic stimulus program on Thursday morning Australian time. Closer to home a series of annual general meetings will occur for local companies in addition to a number of first half results and earnings updates.
Global markets
Over the week the Dow lost 0.3 per cent, the S&P 500 lost 0.1 per cent and the Nasdaq lost 0.5 per cent. On Friday, the Dow Jones Industrial Average dropped 140 points to close at 16,361, the S&P 500 dropped 15 points to close at 1,863 and the NASDAQ retreated 73 points to close at 4,076.
European markets closed mainly lower on Friday as tensions between Ukraine and Russia weighed on sentiment in the region: London's FTSE 100 fell 17 points, France's CAC 40 fell 36 points and Germany's DAX fell 147 points.
Asian markets closed mixed at the end of last week with China’s benchmark posting its largest weekly loss since January: Japan’s Nikkei firmed 24 points, Hong Kong’s Hang Seng lost 339 points, and China’s Shanghai Composite lost 23 points.
The Australian share market rose 1.4 per cent over the public holiday shortened week: The S&P/ASX 200 index firmed 13 points on Thursday, adding to the weekly gain of 77 points to finish at 5,531. On the futures market the SPI is 23 points lower.
Currencies
Last week’s weaker than expected inflation figures have kept a cap on the local currency and at 7.20am this morning the Australian dollar was buying $US0.9278, 55.25 Pence Sterling, 94.79 Yen and 67.06 Euro cents.
Economic news due out today
Commsec: State of The States report
Company news
Westpac Banking Corporation
(ASX:WBC) has affirmed its interest rate forecast following last week’s lower than expected inflation figures. The bank’s Chief Economist Bill Evans expects the Reserve Bank of Australia to keep rates steady until the second half of next year. Last week the Australian Bureau of Statistics’ reported its Consumer Price Index rose 0.6 per cent in the March quarter for an annual inflation rate of 2.9 per cent. Shares in Westpac Banking Corporation rose 0.45 per cent on Thursday to end the trading week at $35.78.
All eyes will be on Padbury Mining Limited
(ASX:PDY) this week after the iron ore explorer again extended its trading halt at the end of last week. Investors continue to await details of a $US6.5 billion funding deal for the stalled Oakajee port and rail project which was flagged by the company more than a fortnight ago on April 11. Padbury Mining told the ASX last week it remains in talks with ASIC and the ASX and expects to make another announcement early this week. Shares in Padbury Mining surged 60 per cent to $0.033 cents following news of the deal, before entering into a trading halt on the same day pending further details.
Ex-dividends today
Steamships Trading Company Limited
(ASX:SST) paying a 49.84 cent unfranked dividend
Tasmania Mines Limited
(ASX:TMM) paying a 3 cent fully franked dividend
Ex-dividends tomorrow
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.5 cent unfranked dividend
Magellan Flagship Fund Limited
(ASX:MFF) paying a 1 cent unfranked dividend
PPK Group Limited
(ASX:PPK) paying a 1.5 cent fully franked dividend
Commodities
Following a weekly fall of almost $US17 the price of gold has rebounded $10.20 to $US1,300.80 an ounce for the June contract on Comex.
Silver has added $0.003 to $19.69 for May.
Copper has gained $0.01 to $3.12 a pound.
Oil has fallen $1.34 to $US100.60 a barrel for June light crude in New York.
