The Australian share market is poised for a positive start to the week and the last day of the 2014 financial year ahead of a deluge of data locally and offshore this week. In the spotlight the Reserve Bank will deliver its monthly rates decision tomorrow on the same day China’s official read on manufacturing activity is released. The European Central Bank (ECB) will hold its monthly meeting on Thursday while the US will end its trading week early for the Independence Day holiday on Friday. Before then investors will digest US Initial Jobless Claims and Non-Farm Payrolls on Thursday to cap off a busy week of economic indicators.
US economic news
Consumer sentiment rose more than expected this month. The Thomson Reuters/University of Michigan's consumer sentiment index rose to 82.5 in June, from 81.9 in May and against expectations for a read of 82.
Global markets
Wall Street’s major indexes traded mixed over last week but closed higher on Friday: The Dow Jones Industrial Average rose 6 points to close at 16,852, the S&P 500 rose 4 points to close at 1,961 and the Nasdaq rose 19 points to close at 4,398.
European markets dropped more than 2 per cent over last week but ended mixed on Friday: London's FTSE 100 added 23 points, France's CAC 40 lost 3 points and Germany's DAX added 10 points.
Asian markets also finished mixed on Friday: Japan’s Nikkei fell 213 points, Hong Kong’s Hang Seng gained 24 points, and China’s Shanghai Composite eased 2 points.
The Australian share market fell 0.4 per cent on Friday despite gaining ground over the week: The S&P/ASX 200 index lost 19 points on Friday, trimming the weekly gain of 26 points to finish at 5,445. On the futures market the SPI is pointing 8 points higher.
Currencies
The Australian dollar has slipped from Friday’s close but remains above $US0.94 and at 7:20am was buying $US0.942, 55.32 Pence Sterling, 95.55 Yen and 69.06 Euro cents.
Economic news due out today
TD Securities-Melbourne Institute: Inflation gauge for June
Housing Industry Association: New home sales data for May
Reserve Bank of Australia: Financial aggregates for May
Company news
Cash Converters International Limited
(ASX:CCV) has tied up the acquisition of three franchised stores in Queensland and says it is on the hunt for more. The second hand goods retailer purchased the stores from an existing franchisee for $5 million, taking its corporate owned stores to 64 in Australia with 59 in the UK. Cash Converters says it is continuing to review opportunities to acquire more stores and boost the distribution network for its financial services products. Shares in Cash Converters International rose 0.93 per cent to close the week at $1.08 following the announcement.
Metals X Limited
(ASX:MLX) has completed the $7.7 million acquisition of the assets that made up the Meekatharra Gold Operations of Reed Resources Limited. The diversified mining group plans to integrate the assets into its own Central Murchison Gold Project with a view to re-establishing gold production in the future. Metals X says the acquisition provides a low capital risk solution to increase gold production without debt, without construction risk and without external pressures for delivery. Shares in Metals X closed the week steady at $0.25 following the announcement.
Ex-dividends today
Clime Capital
(ASX:CAM) paying a 1.15 cent fully franked dividend
Ex-dividends tomorrow
eBet Limited
(ASX:EBT) paying a 5.5 cent 50 per cent franked dividend
Commodities
After gaining about $US7.00 over last week the price of gold has moved $3.00 higher to $US1,320 an ounce for the August contract on Comex.
Silver has eased $0.03 to $21.08 for July.
Copper has lifted $0.02 to $3.17 a pound.
Oil has lost $0.10 to $US105.74 a barrel for August light crude in New York.
