US jobs data beats expectations: Aus shares to rise following US gains

Market Reports

by Anna Napoli

Australian shares are set to start the week on a positive note following gains on Wall Street on Friday. US Stocks posted their second consecutive weekly rise as better-than-expected jobs data provided encouragement to investors. The US economy added 196,000 jobs in March beating expectations of around 175,000. The US unemployment rate, meanwhile, remained at 3.8 per cent. However, wage growth expanded 3.2 per cent, below an expected gain of 3.4 per cent. The stock market, meantime, has continued to push higher on the promise of a trade deal between the US and China, and the major indexes are all nearly 2 per cent or less from their all-time highs. US-China trade talks will continue this week via video-link.

Global oil prices rose to 5-month highs on Friday as the strong jobs data eased demand concerns.

Markets

Taking a look at global markets: Wall Street closed higher on Friday : The Dow Jones Industrial Average closed 0.2 per cent higher at 26,425, the S&P 500 rose 0.5 per cent to 2893 and the NASDAQ gained 0.6 per cent to 7939.

European markets closed higher: London’s FTSE rose 0.6 per cent, Paris was up 0.2 per cent and Frankfurt gained 0.2 per cent.

Asian markets closed mixed, Tokyo’s Nikkei gained 0.4 per cent, Hong Kong’s Hang Seng dropped 0.2 per cent and China’s Shanghai Composite rose 0.9 per cent.

Locally, the SPI futures are up 32 points. On Friday the Australian share market closed 51 points lower at 6181.

Local economic news

On Tuesday the ABS releases the lending to households and businesses figures. On Wednesday all eyes will be on the monthly consumer confidence figures, the ABS is also due to release data on Building and Construction activity. On Thursday we can expect Overseas Arrivals and Departures figures, and, finally on Friday the Reserve Bank releases February data on credit and debit cards.

Company news

Spark Infrastructure (ASX:SKI) has announced that SA Power Networks, has undertaken a number of notes placements with the total proceeds raised about A$646 million. Spark Infrastructure holds a 49 per cent interest in SA Power Networks. The funds will be used to refinance a significant majority of pending debt maturities in September and October 2019, and for general corporate purposes. Shares in Spark Infrastructure (ASX:SKI) closed 1.4 per cent lower on Friday to $2.19.

Ex-Div

Brickworks (ASX:BKW) is paying 19 cents fully franked and Clover Corporation (ASX:CLV) is paying 0.625 cents fully franked.

Currencies

One Australian Dollar at 7:50 AM was buying 71.08 US cents, 54.51 Pence Sterling, 79.41 Yen and 63.37 Euro cents.

Commodities

Iron Ore futures suggest a 0.32 per cent gain
Gold has added $1.30 to US$1296 an ounce.
Silver is flat at US$15.09 an ounce.
Oil gained 98 cents to US$63.08 a barrel.