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Following a week of losses the Australian share market looks set to end the week on a soft note ahead of a long weekend and America’s monthly jobs report. The European Central Bank was in focus overnight as it kept its key lending and deposit rates unchanged at record lows but its President disappointed by failing to outline a detailed stimulus plan.
International Monetary Fund chief Christine Lagarde warned the global economy could be facing a period of ‘mediocre’ growth prospects. Wall Street lifted from the lows of a volatile session but ended mixed after US factory orders were shown to have fallen and jobless claims dropped more than expected. The price of iron ore has moved higher for a second straight day and the Australian dollar has risen back above $US0.88.
Global markets
Wall Street posted a flat finish to Thursday’s session: The Dow Jones Industrial Average dipped 0.02 per cent to close at 16,801, the S&P 500 closed steady at 1,946 and the Nasdaq added 0.2 per cent to close at 4,430.
European markets slumped on Thursday: London's FTSE 100 sank 1.7 per cent, France's CAC 40 sank 2.5 per cent and Germany's DAX sank 2 per cent.
Across Asian markets: Japan’s Nikkei tumbled 2.6 per cent, Hong Kong’s Hang Seng will get back to trading today while China’s Shanghai Composite remains closed for holidays.
The Australian share market traded in the red and ended 0.7 per cent down yesterday: The S&P/ASX 200 index fell 36 points to 5,298 on Thursday. On the futures market the SPI is 19 points lower.
Currencies
The Australian dollar at 7:20am was buying $US0.8801, 54.52 Pence Sterling, 95.4 Yen and 69.48 Euro cents.
Economic news due out today
Australian Industry Group: Performance of Services Index for September
Company news
Ramsay Health Care Limited (ASX:RHC) has completed the acquisition of a controlling interest in France's biggest private hospital operator, Générale de Santé. Australia’s largest private hospital operator revealed the deal in June in joint venture with an insurance company named Crédit Agricole Assurances. The JV will emerge with an 83.43 per cent stake after which both companies will launch a mandatory tender offer over the remaining share capital. Générale de Santé includes about 75 facilities of which 61 are hospitals and generates annual revenues of about $2.45 billion. Shares in Ramsay Health Care fell 0.75 per cent to close at $50.09 on Thursday following the announcement.
AP Eagers Limited (ASX:APE) has tied up the purchase of the motor trade operations of Craig Black Group in Queensland. Australia's oldest listed automotive retail group announced the $33 million deal in May which includes a combination of cash and shares. Craig Black Group has an annual turnover of around $245 million and includes Black Toyota and Hyundai, Volkswagen and Mitsubishi dealerships across Central and South Western Queensland. The company’s founder Craig Black will continue as a consultant in the business and a shareholder in AP Eagers. Shares in AP Eagers gained 1.26 per cent to close at $5.62 on Thursday following the announcement.
Commodities
Gold has dipped $0.40 to $US1,215 an ounce for the December contract on Comex.
Silver has slipped $0.21 to $17.05 for December.
Copper has eased $0.04 to $3.00 a pound.
Oil has gained $0.28 to $US91.01 a barrel for November light crude in New York.
Ex-dividends
Brierty Limited (ASX:BYL) paying an 8 cent fully franked dividend
McPherson's Limited (ASX:MCP) paying a 5 cent fully franked dividend
Money3 Corporation Limited (ASX:MNY) paying a 2.5 cent fully franked dividend
Nick Scali Limited (ASX:NCK) paying a 7 cent fully franked dividend
OrotonGroup Limited (ASX:ORL) paying an 8 cent fully franked dividend
Reece Australia Limited (ASX:REH) paying a 42 cent fully franked dividend
SG Fleet Group Limited (ASX:SGF) paying a 4 cent fully franked dividend
Sirtex Medical Limited (ASX:SRX) paying a 14 cent fully franked dividend
Watermark Market Neutral Fund Limited (ASX:WMK) paying a 2.5 cent fully franked dividend
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