The Australian share market is poised for a positive start after global markets edged higher on Friday following a week of losses. Though Wall Street rose at the end of last week the S&P 500 booked its biggest weekly fall since April. Elsewhere European markets also ended the week higher on Friday despite ongoing concerns about Portugal’s banks. Looking ahead central bankers will be in focus tomorrow with a testimony from US Federal Reserve Chair Janet Yellen and minutes from the Reserve Bank of Australia’s July board meeting.
Global markets
Wall Street shed almost 1 per cent over last week but ended Friday higher: The Dow Jones Industrial Average rose 0.2 per cent to close at 16,944, the S&P 500 rose 0.2 per cent to close at 1,968 and the Nasdaq rose 0.4 per cent to close at 4,415.
European markets dropped more than 3 per cent last week but firmed on Friday: London's FTSE 100 added 0.3 per cent, France's CAC 40 added 0.4 per cent and Germany's DAX added 0.07 per cent.
Asian markets fell over last week but ended mixed on Friday: Japan’s Nikkei eased 0.3 per cent, Hong Kong’s Hang Seng eased 0.02 per cent, and China’s Shanghai Composite gained 0.4 per cent.
The Australian share market lost 0.7 per cent over last week amid rising concerns for European banks and a potential correction on Wall Street: The S&P/ASX 200 index lifted 22 points on Friday, trimming the weekly loss of 38 points to close at 5,487. On the futures market the SPI is 12 points higher.
Currencies
After gaining about $0.002 against the greenback over last week the Australian dollar at 7:20am has slipped slightly to $US0.9384, 54.84 Pence Sterling, 95.12 Yen and 68.99 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Lending finance for May including lease, personal, housing & commercial loans
Company news Commonwealth Bank of Australia
(ASX:CBA) has taken another step to try and rectify its multi-million dollar financial planning scandal between September 2003 and July 2012. The bank has appointed the Hon Ian Callinan AC as Chairman of the Independent Review Panel for the recently announced Open Advice Review program. The development comes after CBA’s boss Ian Narav earlier this month apologised for the breach of trust and financial loss and outlined plans for a program to compensate the customers who have lost money. Shares in Commonwealth Bank of Australia rose 0.47 per cent on Friday to end the week at $81.23.
David Jones Limited
(ASX:DJS) shareholders will today cast their vote on South African retailer Woolworths Holdings Limited’s (JSE:WHL) $2.2 billion takeover offer. DJs board backed the bid when it was launched in April and Woolworths shareholders almost unanimously voted in favour of the acquisition last month. DJ’s boss Paul Zahra has described the $4 per share proposal as compelling and urged shareholders to vote in favour of the bid. Shares in David Jones ended steady at $3.93 on Friday.
Commodities
After jumping almost $US16 over last week the price of gold has dipped $0.10 to $US1,337 an ounce for the August contract on Comex.
Silver has added $0.04 to $21.50 for September.
Copper has firmed $0.002 to $3.27 a pound.
Oil has slipped $2.10 to $US100.83 a barrel for August light crude in New York.
