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The SPI is pointing to a soft start for Australian share market following weak leads and ahead of this evening’s Federal Budget release. Wall Street ended near session lows as attention remained on Greece’s debt woes and talks with its international creditors. On the local company front financial results are due from CSR Limited (ASX:CSR) and Orica Limited (ASX:ORI) while Coca-Cola Amatil Limited (ASX:CCL) will hold its annual general meeting.
Global markets
Wall Street started the week in the red: The Dow Jones Industrial Average dipped 0.5 per cent to close at 18,105, the S&P 500 dipped 0.5 per cent to close at 2,105 and the Nasdaq dipped 0.2 per cent to close at 4,994.
European markets moved lower on Monday: London's FTSE 100 slipped 0.2 per cent, France's CAC 40 slipped 1.2 per cent and Germany's DAX slipped 0.3 per cent.
Asian markets moved higher on Monday: Japan’s Nikkei gained 1.3 per cent, Hong Kong’s Hang Seng gained 0.5 per cent, and China’s Shanghai Composite gained 3 per cent.
The Australian share market erased the morning’s gains and ended in the red yesterday: The S&P/ASX 200 index ended 9 points lower at 5,625 on Monday. On the futures market the SPI is 3 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.7893, 50.65 Pence Sterling, 94.8 Yen and 70.8 Euro cents.
Economic news due out today
Australia Government: Federal Budget to be released at 7.30pm AEST
Australian Bureau of Statistics: Housing finance figures for March
Company news
Ahead of today’s Federal Budget release child care stocks were trading higher yesterday after the government revealed new policy funding initiatives for the sector. Shares in G8 Education Limited (ASX:GEM) and Affinity Education Group Limited (ASX:AFJ) were among the stocks supported by the proposed changes. The proposal is expected to be formally released this evening and include a $3.5 billion boost to the child care sector in the next four years. Shares in G8 Education rose 6.08 per cent to close at $4.01 on Monday.
Shares in Worleyparsons Limited (ASX:WOR) also rose yesterday after announcing it has been awarded offshore and marine program management services contracts. While the contract price has not been disclosed the engineering company says the new six-year deal will see it provide services for Saudi Aramco’s existing and new offshore facilities. Shares in Worleyparsons rose 1.01 per cent to close at $9.98 on Monday following the announcement.
Commodities
Gold has declined $5.90 to $US1,183 an ounce for the June contract on Comex.
Silver has fallen $0.15 to $16.31 for July.
Copper has slipped $0.02 to $2.90 a pound.
Oil is $0.14 lower at $US59.25 a barrel for June light crude in New York.
(20min delay)