The Australian share market is set to rise after better than expected US hiring numbers supported Wall Street overnight. The Dow and the S&P 500 hit more record highs while the Nasdaq edged lower in what will be a shortened trading week in the US. On the local front Australian investors will today digest retail sales and building approvals reports amid expectations both may slip from the prior month.
US economic news
Private-sector payroll growth exceeded expectations and hit a 1.5 year high last month. Paycheck processor ADP reported private-sector payrolls gained 281,000 in June, supporting a positive outlook on the US economy ahead of this evening’s early release of the Labor Department’s official employment report.
Global markets
Wall Street closed mixed on Wednesday: The Dow Jones Industrial Average added 0.1 per cent to close at 16,976, the S&P 500 added 0.07 per cent to close at 1,975 and the Nasdaq lost 0.02 per cent to close at 4,458.
European markets closed mixed on Wednesday: London's FTSE 100 added 0.2 per cent, France's CAC 40 lost 0.4 per cent and Germany's DAX added 0.09 per cent.
Asian markets rose on Wednesday: Japan’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng added 1.6 per cent, and China’s Shanghai Composite added 0.4 per cent.
The Australian share market spiked 1.5 per cent yesterday on the back of more record highs on Wall Street: The S&P/ASX 200 index jumped 80 points on Wednesday to close at 5,455. On the futures market the SPI is pointing 20 points higher.
Currencies
The Australian dollar at 7:20am was buying $US0.9442, 55.03 Pence Sterling, 96.11 Yen and 69.16 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Building approvals and retail trade data for May
Australian Industry Group: Performance of Services Index for June
Company news BHP Billiton Limited
(ASX:BHP) has shipped its one billionth tonne of iron ore to Japan and affirmed its aspirations to continue growing its iron ore operations in Western Australia. The global miner celebrated the milestone yesterday with customers, joint venture partners ITOCHU and Mitsui and employees in Port Hedland. BHP Billiton shipped its first tonne of iron ore to Japan in 1966 and says the commodity is today an essential ingredient for Japan’s high-tech steel industry. Shares BHP Billiton rose 2.36 per cent on Wednesday to close at $36.85.
Wesfarmers Limited
(ASX:WES) has cut the value of its Target business and warned provisions for its liquor division will be booked in its fiscal 2014 result. The conglomerate has lowered Target’s value by $680 million after the retailers earnings fell more than 50 per cent in the first half and following a period of profit warnings from retailers. Wesfarmers will also book $94 million in provisions for its retail liquor business as a result of its turnaround strategy associated with store network restructuring. Shares Wesfarmers rose 2.75 per cent on Wednesday to close at $42.66.
Commodities
Gold has gained $4.30 to $US1,331 an ounce for the August contract on Comex.
Silver has risen $0.09 to $21.16 for September.
Copper has firmed $0.06 to $3.26 a pound.
Oil has lost $0.86 to $US104.48 a barrel for August light crude in New York.
