The SPI is pointing to a subdued start to the week for the Australian share market despite America’s S&P 500 again hitting a fresh all-time high. US equity markets advanced after a weaker than expected official employment report supported speculation rates won’t rise in the near term.
In the week ahead China is expected to release trade data today and inflation figures on Wednesday. Australian economic news will include job ads today, business confidence and conditions tomorrow, consumer confidence figures on Wednesday and local jobs numbers of Thursday.
US economic news
America’s nonfarm payrolls grew less than expected last month. The Labor Department reported the nation’s economy created 142,000 jobs in August, down from expectations of a gain of 230,000. The unemployment rate dropped to 6.1 per cent in August from 6.2 per cent the month before.
Global markets
Wall Street firmed 0.2 per cent over last week after gaining ground on Friday: The Dow Jones Industrial Average gained 0.4 per cent to close at 17,137, the S&P 500 gained 0.5 per cent to close at 2,008 and the Nasdaq gained 0.4 per cent to close at 4,583.
European markets advanced more than 3 per cent over the same week the European Central Bank (ECB) cut rates, but markets ended mixed on Friday: London's FTSE 100 fell 0.3 per cent, France's CAC 40 dropped 0.2 per cent and Germany's DAX lifted 0.2 per cent.
Across Asian markets, Japan lifted more than 1.5 per cent and China soared almost 5 per cent over the week, but markets closed mixed Friday: Japan’s Nikkei slipped 0.05 per cent, Hong Kong’s Hang Seng lost 0.2 per cent, and China’s Shanghai Composite gained 0.9 per cent.
The Australian share market declined 0.6 per cent on Friday after the ECB’s stimulus announcement and ahead of America’s jobs report. The S&P/ASX 200 index fell 33 points on Friday, extending the weekly decline of 27 points to end at 5,599. On the futures market the SPI is 2 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.9367, 57.92 Pence Sterling, 98.43 Yen and 72.32 Euro cents.
Economic news due out today
ANZ Banking Group
(ASX:ANZ): Job advertisements series for August
Company news
ANZ Banking Group
(ASX:ANZ) has forecast Australia’s beef exports to China could be worth $130 billion by 2030. The bank has released a report revealing potential opportunities and challenges for the Australian beef sector. ANZ says Australia currently supplies 57 per cent of China’s beef imports and maintaining market share by 2030 could be worth about $10 billion per annum to Australia. Shares in ANZ Banking Group slipped 0.54 per cent to $33.34 on Friday.
Prana Biotechnology Limited
(ASX:PBT) surged at the end of last week on the back of an exciting development for its drug targeting the treatment of Huntington disease. The biotech business announced the US Food and Drug Administration has granted Orphan Drug designation to its PBT2 drug. Chairman and CEO Geoffrey Kempler has described the milestone as very pleasing and says it is a highly important input to determining the commercialisation pathway for PBT2. Shares in Prana Biotechnology surged 34.69 per cent to $0.33 on Friday following the announcement.
Commodities
After shedding about $US25 over last week the price of gold has firmed $0.80 to $US1,267 an ounce for the December contract on Comex.
Silver has added $0.02 to $19.16 for December.
Copper has put on $0.02 to $3.16 a pound.
Oil has lost $1.16 to $US93.29 a barrel for October light crude in New York.
Ex-dividends today
Ainsworth Game Technology Limited
(ASX:AGI) paying a 5 cent unfranked dividend
CSL Limited
(ASX:CSL) paying a 64.848 cent unfranked dividend
Insurance Australia Group
(ASX:IAG) paying a 26 cent fully franked dividend
Orora Limited
(ASX:ORA) paying a 3 cent unfranked dividend
RCG Corporation Limited
(ASX:RCG) paying a 2.5 cent fully franked dividend
Ramsay Health Care
(ASX:RHC) paying a 51 cent fully franked dividend
Sunland Group Limited
(ASX:SDG) paying a 2 cent fully franked dividend
Sedgman Limited
(ASX:SDM) paying a 2 cent fully franked dividend
Tox Free Solutions
(ASX:TOX) paying a 3 cent fully franked dividend
Veda Group Limited
(ASX:VED) paying a 4 cent unfranked dividend
