The Australian share market is poised for a positive start to the session after Wall Street started the trading week higher. US investors shrugged off escalating conflict between Ukraine and Russia and news China’s manufacturing contracted for a fourth month in April. Stocks were instead given a boost by positive economic data showing the US services sector expanded more than expected last month.
On the home front all eyes will be on the Reserve Bank of Australia when its monthly interest rates decision is revealed this afternoon. The central bank is broadly expected to keep rates at a record low of 2.5 per cent and maintain its neutral monetary policy bias.
Global markets
Wall Street reversed earlier losses to end higher on Monday: The Dow Jones Industrial Average rose 18 points to close at 16,531, the S&P 500 rose 4 points to close at 1,885 and the Nasdaq rose 14 points to close at 4,138.
European markets closed mixed on Monday: London’s FTSE paused for the early May bank holiday, France's CAC added 5 points and Germany's DAX lost 27 points.
Asian markets also closed mixed on Monday: Japan’s Nikkei fell 28 points, Hong Kong’s Hang Seng fell 284 points, and China’s Shanghai Composite added 1 point.
The Australian share market posted a soft start to the week after trading broadly unchanged yesterday: The S&P/ASX 200 index added 4 points on Monday to close at 5,462. On the futures market the SPI is pointing 10 points higher.
Currencies
The Australian dollar at 7:20am was buying $US0.9274, 54.99 Pence Sterling, 94.73 Yen and 66.85 Euro cents.
Economic news due out today
Reserve Bank of Australia: May board meeting and interest rate decision
Australian Bureau of Statistics: International trade in goods and services for March
Dun and Bradstreet: Business expectations survey
Company news
Rupert Murdoch’s News Corp
(ASX:NWS) has this morning published pictures and a video of Crown Resorts Limited
(ASX:CWN) Executive Chairman James Packer exchanging punches with Nine Entertainment Co Holdings Limited
(ASX:NEC) CEO David Gyngell. The brawl occurred over the weekend in Sydney’s beachside suburb of Bondi and is understood to have been sparked by a personal matter between the two executives who have been friends since childhood. Reports speculate News Corp is understood to have paid more than $200,000 for the right to publish the images. Both Mr Packer and Mr Gyngell released a statement following the incident confirming they remained friends. While Crown has not commented on the issue Nine’s Chairman David Haslingden voiced the board’s support of Mr Gyngell in a prepared statement released yesterday. Shares in News Corp lifted 0.88 per cent on Monday to end the session at $18.25.
Virgin Australia Holdings Limited
(ASX:VAH) has managed to increase its March passenger numbers despite being impacted by Easter falling in April this year. Australia’s second largest carrier lifted domestic passenger numbers by 2 per cent and international passenger numbers by 11.5 per cent last month. Virgin has also advised its yields, or returns on fares, have been positive compared to Qantas Airways Limited
(ASX:QAN) who last week warned its yields are lower for the financial year to date. The report came on the same day Virgin’s partner Etihad Airways launched a new class on their A380 featuring a three-room cabin called ‘The Residence’. Shares in Virgin Australia Holdings ended Monday 1.37 per cent lower at $0.36.
Commodities
Gold has gained $6.40 to $US1,309.30 an ounce for the June contract on Comex.
Silver has lifted $0.03 to $19.57 for May.
Copper has dipped $0.02 to $3.05 a pound.
Oil has slipped $0.28 to $US99.48 a barrel for June light crude in New York.
