Following a six-day losing streak the Australian share market looks to rebound into the new week as local reporting season continues to roll on. The SPI is suggesting gains at open after Wall Street rose at the end of last week on the back of easing tensions between Russia and Ukraine. Despite US military action in Iraq investors shrugged off a week of geopolitical jitters which in turn saw precious metal and iron ore prices fall. Bendigo and Adelaide Bank Limited
(ASX:BEN) and JB Hi-Fi Limited
(ASX:JBH) will kick off corporate results today ahead of more than 30 companies due to report this week.
Global markets
Wall Street firmed 0.3 per cent over last week after jumping on Friday: The Dow Jones Industrial Average gained 1.1 per cent to close at 16,554, the S&P 500 gained 1.2 per cent to close at 1,932 and the Nasdaq gained 0.8 per cent to close at 4,371.
European markets sank more than 2 per cent over last week after extending losses on Friday: London's FTSE 100 fell 0.5 per cent, France's CAC 40 fell 0.05 per cent and Germany's DAX fell 0.3 per cent.
Across Asia Japan’s benchmark index declined almost 5 per cent but China rose 0.4 per cent over last week. On Friday, Asian markets ended mixed as Japan’s Nikkei dipped almost 3 per cent, Hong Kong’s Hang Seng slipped 0.2 per cent, and China’s Shanghai Composite added 0.3 per cent.
The Australian share market tumbled 1.3 per cent on Friday and 2.2 per cent over the week: The S&P/ASX 200 sank 74 points on Friday, widening the weekly decline of 121 points to finish at 5,435. On the futures market the SPI is 37 points higher.
Currencies
The Australian dollar hit a two-month low against the greenback following the Reserve Bank of Australia's monetary policy statement on Friday. At 7:30am this morning the local currency was buying $US0.9276, 55.32 Pence Sterling, 94.73 Yen and 69.21 Euro cents.
Reporting season
Bendigo and Adelaide Bank Limited
(ASX:BEN) will hand down its annual financial report today. In the first half the Brisbane-based regional lender reported a 4.6 per cent fall in profit but maintained a stable outlook of the back of a 9.5 per cent lift in cash earnings. At the time of interim results Managing Director Mike Hirst forecast stability and for the focus of competition to shift from deposits to assets. Shares in Bendigo and Adelaide Bank fell 1.77 per cent to close at $12.18 at the end of last week.
JB Hi-Fi Limited’s
(ASX:JBH) full year results come after the electronics retailer affirmed its guidance in June. The company expects its annual net profit to grow between 8.3 per cent to 10.8 per cent to between $126 million and $129 million. The new financial year marked JB-Hi-Fi’s CEO transition with Richard Murray taking the reins from outgoing CEO Terry Smart. Shares in JB Hi-Fi fell 1.82 per cent to close at $19.37 at the end of last week.
Ex-dividends today
Corum Group Limited
(ASX:COO) paying a 0.6 cent unfranked dividend
Ex-dividends tomorrow
AMCIL Limited
(ASX:AMH) paying a 6.5 cent fully franked dividend
BKI Investment Company Limited
(ASX:BKI) paying a 3.5 cent fully franked dividend
Tabcorp Holdings Limited
(ASX:TAH) paying a 8 cent fully franked dividend
Commodities
After gaining almost $US27 over last week the price of gold has lost $1.50 to $US1,311 an ounce for the December contract on Comex.
Silver has eased $0.05 to $19.94 for September.
Copper has declined $0.01 to $3.17 a pound.
Oil has firmed $0.31 to $US97.65 a barrel for September light crude in New York.
