Outlook: ASX to eye RBA call & economic data

The SPI is pointing to a weak start for the Australian share market in the absence of leads from Wall Street. As US markets stayed closed on Monday for the Labor Day public holiday European markets posted a soft start to September. In Australia economic reports will continue to roll in ahead of this afternoon’s Reserve Bank interest rate decision. While economists expect rates to remain at a record low of 2.5 per cent attention will be fixed on any change to the central bank’s outlook. Across commodity markets the price of iron ore has fallen to a new two year low following yesterday’s weak Chinese manufacturing data. 

 

Global markets

Wall Street was closed on Monday but rose at the end of last week: On Friday the Dow Jones Industrial Average added 0.1 per cent to close at 17,098, the S&P500 gained 0.3 per cent to close at 2,003 and the Nasdaq lifted 0.5 per cent to close at 4,580.

 

European markets started the trading week mixed: London's FTSE 100 firmed 0.08 per cent, France's CAC 40 dipped 0.03 per cent and Germany's DAX put on 0.09 per cent.

 

Asian markets moved up on Monday: Japan’s Nikkei improved 0.3 per cent, Hong Kong’s Hang Seng increased 0.04 per cent, and China’s Shanghai Composite gained 0.8 per cent.

 

The Australian share market closed the first session of September slightly higher: The S&P/ASX 200 Index added 4 points on Monday to close at 5,630. On the futures market the SPI is 5 points lower. 

 

Currencies

The Australian dollar at 7:30am was buying $US0.9334, 56.23 Pence Sterling, 97.39 Yen and 71.12 Euro cents.

 

Economic news due out today

Reserve Bank of Australia: September board meeting and interest rate decision

Australian Bureau of Statistics: Building approvals data for July, the Balance of Payments and International Investment Position for the June quarter and government finance statistics for the June quarter

Dun and Bradstreet: Business expectations survey

ANZ Banking Group (ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey 

 

Company news

Yahoo7, Seven West Media Limited’s (ASX:SWM) 50:50 partnership with Yahoo! Inc. (NASDAQ:YHOO), has formed a partnership with the Xbox One video game and entertainment system from Microsoft. The partnership will allow Yahoo7’s PLUS7 catch up TV service made available to Xbox One owners through their console. Seven West Media has also announced the resignation of Doug Flynn as a director on its board. Both announcements come amid reports Seven West Media has won a multi-year broadcast deal for Gerry Harvey’s Magic Millions horse racing carnival. Shares in Seven West Media rose 0.27 per cent on Monday to close at $1.86. 

Westpac Banking Corporation (ASX:WBC) and the Melbourne Institute have reported Australia’s small business confidence has reached the lowest level of the year. The Small Business Index dropped 10.1 per cent to 111.4 in the August report but still remains in positive territory. Across the states small businesses in New South Wales and Queensland posted a significant decline while Western Australia was the only state to show an improved performance. Westpac expects to see sentiment pick up across the nation over the next quarter in the lead up to the busy pre-Christmas period. Shares in Westpac Banking Corporation gained 0.29 per cent on Monday to close at $35.14.

Commodities

Gold has dipped $3.00 to $US1,287 an ounce for the December contract on Comex.
Silver has slipped $0.12 to $19.49 for December.
Copper has added $0.01 to $3.16 a pound.
Oil has lifted $1.41 to $US95.96 a barrel for October light crude in New York.