The Australian share market looks set for a steady start to the week despite a positive lead from Wall Street with the S&P 500 hitting a new record. US markets lifted over the week ahead of the US Memorial Day public holiday which will see markets closed on Monday and elsewhere the UK will have a bank holiday on Monday. Investors will likely turn to election results in Ukraine for direction as well as a series of local economic reports due later in the week.
Global markets
Wall Street rose at the end of last week: The Dow Jones Industrial Average gained 63 points to close at 16,606, the S&P 500 gained 8 points to close at 1,901 and the Nasdaq gained 31 points to close at 4,186.
European markets closed mixed at the end of last week: London's FTSE 100 slipped 5 points, France's CAC 40 added 15 points and Germany's DAX firmed 47 points.
Asian markets finished higher on Friday: Japan’s Nikkei lifted 124 points, Hong Kong’s Hang Seng lifted 12 points, and China’s Shanghai Composite lifted 13 points.
The Australian share market gained ground at the end of last week: The S&P/ASX 200 index rose 13 points on Friday, extending the weekly gain of 14 points to close at 5,493. On the futures market the SPI is pointing 3 points higher.
Currencies
The Australian dollar fell to a two week low at the end of last week and at 7:20am was buying $US0.9236, 54.89 Pence Sterling, 94.24 Yen and 67.82 Euro cents.
Company news
Telstra Corporation Limited
(ASX:TLS) helped drive the telco sector to last week’s best performer. Australia’s biggest telco hit a nine year high earlier in the week after announcing plans to create one of the world’s largest Wi-Fi networks. As part of the company’s expansion plans CEO David Thodey says Telstra is aiming to generate about one-third of its revenues from Asian businesses by 2020. Shares in Telstra Corporation rose 0.37 per cent on Friday to end the week at $5.38.
Shares in St. Barbara Limited
(ASX:SBM) took a hit on Friday after revealing Moody’s Investors Service had cut its credit rating. While Moody’s revised the gold producer’s credit rating from B3 to Caa1 St. Barbara says there is no change to its existing debt arrangements as a consequence. The company’s cash reserves dropped to $58 million at the end of the March quarter from $117.5 million in the middle of 2013. Shares in St. Barbara fell 5.13 per cent on Friday to end the week at $0.185.
Ex-dividends
SP AusNet
(ASX:SPN) paying a 4.18 cent dividend, 33.33 per cent franked
Whitefield Limited
(ASX:WHF) paying an 8.5 cent dividend fully franked
Commodities
Gold has dipped $3.30 to $US1,291.70 an ounce for the June contract on Comex.
Silver has slipped $0.10 to $19.42 for May.
Copper has added $0.04 to $3.17 a pound.
Oil has firmed $0.61 to $US104.35 a barrel for July light crude in New York.
