Outlook: Aus shares set for unsteady start

Market Reports

The Australian share market looks set for an unsteady start to the day following a weekend of escalating tensions between Ukraine and Russia. Instability between the two countries weighed on sentiment at the end of last week with US stocks slipping despite a strong monthly jobs report. 
 
In the week ahead the US Federal Reserve’s chair Janet Yellen's testimony on the health of America’s economy will be in focus as stocks continue to nudge record highs. Closer to home the Reserve Bank of Australia is expected to keep rates at a record low of 2.5 per cent when it holds its May board meeting tomorrow. 
 
US economic news
 
The American economy added more jobs than expected last month, helping to push the jobless rate to a 5.5 year low. The Labor Department has reported nonfarm payrolls jumped 288,000 while the unemployment rate dropped to 6.3 per cent in April from 6.7 per cent the month before. 
 
Global markets
 
Wall Street rose over last week on the back of upbeat earnings and the Fed’s plans to keep tapering, but US stocks fell on Friday: The Dow Jones Industrial Average fell 46 points to close at 16,513, the S&P 500 fell 3 points to close at 1,881 and the Nasdaq fell 4 points to close at 4,124.

European markets closed mixed at the end of last week: London's FTSE 100 added 14 points, France's CAC 40 lost 29 points and Germany's DAX lost 47 points.
 
Asian markets also closed mixed at the end of last week: Japan’s Nikkei lost 28 points, Hong Kong’s Hang Seng added 127 points, and China’s Shanghai Composite added 6 points.
 
Despite ending Friday higher the Australian share market fell 1.4 per cent over last week: The S&P/ASX 200 index added 9.3 points on Friday, trimming the weekly loss of 72.9 points to finish at 5,458. On the futures market the SPI is pointing 7 points higher. 
 
Currencies 
 
The Australian dollar has firmed from Friday’s close and at 7:20am this morning was buying $US0.9285, 55.02 Pence Sterling, 94.92 Yen and 66.94 Euro cents.
 
Economic news due out today 
 
Australian Bureau of Statistics: Building approvals for March
 
ANZ Banking Group (ASX:ANZ): Job advertisements series for April
 
TD Securities-Melbourne Institute: Inflation gauge for April
 
Australian Industry Group: Performance of Services Index for April
 
Company news
 
Westpac Banking Corporation (ASX:WBC) will continue the banking reporting season when it releases its first half results today. Analysts are expecting the bank to post an interim cash profit of $3.6 billion with a dividend payout of 90 cents per share. Results from Macquarie Group Limited (ASX:MQG) and ANZ Banking Group (ASX:ANZ) both beat analyst expectations last week. National Australia Bank Limited’s (ASX:NAB) results are due this Thursday. Shares in Westpac Banking Corporation rose 0.49 per cent on Friday to finish the week at $34.87. 

Leighton Holdings Limited (ASX:LEI) will be in the spotlight when it reports its first quarter results. The construction company is currently the subject of a $1.15 billion takeover by its Spanish controlled shareholder Hochtief. Over the full 2013 calendar year Leighton Holdings improved its net profit by 13 per cent to $469 million. Shares in Leighton Holdings rose 1.91 per cent on Friday to finish the week at $19.16. 
 
Commodities 
 
Gold has gained $10.80 to $US1,303 an ounce for the June contract on Comex. 
Silver has lifted $0.50 to $19.55 for May. 
Copper has added $0.04 to $3.08 a pound.
Oil has risen $0.34 to $US99.76 a barrel for June light crude in New York.

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