The Australian share market is eyeing a steady start following the European Central Bank’s (ECB) meeting and ahead of US non-farm payrolls this evening. Traders will respond to the ECB’s surprise decision to cut rates while lowering its growth and inflation outlook for the 18 country euro area. While European stocks rose in response Wall Street dipped as US private payroll growth was shown to have slowed, the trade gap narrowed but services sector strengthened.
Local trade is likely to remain subdued today ahead of this evening’s key monthly jobs report in America expected to show a 220,000 gain in job creation and fall in the US jobless rate to 6.1 per cent. Across commodity markets the price of iron ore continued to retreat and has hit a new five-year low and precious metals prices are also lower.
Global markets
Wall Street closed slipped on Thursday: The Dow Jones Industrial Average eased 0.05 per cent to close at 17,070, the S&P 500 lost 0.2 per cent to close at 1,998 and the Nasdaq dipped 0.2 per cent to close at 4,562.
European markets rose on Thursday: London's FTSE 100 firmed 0.06 per cent, France's CAC 40 gained 1.7 per cent and Germany's DAX advanced 1 per cent.
Asian markets closed mixed on Thursday: Japan’s Nikkei fell 0.3 per cent, Hong Kong’s Hang Seng lost 0.1 per cent, and China’s Shanghai Composite lifted 0.8 per cent.
The Australian share market sank to session lows to shed 0.4 per cent by close yesterday: The S&P/ASX 200 index fell 25 points on Thursday to finish at 5,631. On the futures market the SPI is steady.
Currencies
The Australian dollar at 7:30am was buying $US0.9345, 57.28 Pence Sterling, 98.39 Yen and 72.25 Euro cents.
Economic news due out today
Australian Industry Group-Housing Industry Association: Performance of construction index
Company news
Dick Smith Holdings Limited
(ASX:DSH) has announced an exclusive partnership with the world’s fifth largest duty-free operator, Gebr. Heinemann. The electronics retailer is now set to open its Move stores at the Sydney international and Virgin domestic terminals following a successful tender to Sydney Airport. Dick Smith expects to start selling in the first quarter of next year and anticipates generating up to $50 million in sales in the first full year. Shares in Dick Smith Holdings rose 0.88 per cent to close at $2.28 on Thursday following the announcement.
Telstra Corporation Limited
(ASX:TLS) says students from Delany College in western Sydney will be the first to benefit from connected learning. The connected classroom combines video conferencing, wireless mobile devices, interactive desks and cloud-based software applications. Australia’s biggest telco says it is committed to helping other schools develop similar connected, automated and collaborative learning environments. Shares in Telstra Corporation eased 0.87 per cent to close at $5.67 on Thursday following the announcement.
Ex-dividends
Academies Australasia Group Limited
(ASX:AKG) paying a 3 cent fully franked dividend
Corporate Travel Management Limited
(ASX:CTD) paying a 7.5 cent fully franked dividend
Caltex Australia Limited
(ASX:CTX) paying a 20 cent fully franked dividend
Evolution Mining Limited
(ASX:EVN) paying a 1 cent unfranked dividend
Hansen Technologies
(ASX:HSN) paying a 3 cent fully franked dividend
Sonic Healthcare
(ASX:SHL) paying a 40 cent dividend, 55 per cent franked
Vision Eye Institute
(ASX:VEI) paying a 1.25 cent fully franked dividend
Vocus Communications Limited
(ASX:VOC) paying a 1 cent fully franked dividend
Commodities
Gold has dipped $3.80 to $US1,266.50 an ounce for the December contract on Comex.
Silver has slipped $0.05 to $19.14 for December.
Copper has firmed $0.03 to $3.15 a pound.
Oil has lost $1.09 to $US94.45 a barrel for October light crude in New York.
