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Returning from the Queen’s Birthday Public Holiday on Monday the Australian share market looks to lift into the new trading week. The European Central Bank’s stimulus package announcement last week continued to encourage global markets. A solid US jobs report could provide support into this week but traders will also digest mixed China trade data which showed the nation’s imports fell short of expectations.
On local shores Australia’s will get an insight into post-Federal Budget conditions with a read on business conditions and confidence due today and a print on consumer sentiment tomorrow. The week’s major release will come on Thursday when Australia’s own jobs report is expected to show job creation of 10,000 and the jobless rate climbing up to 5.9 per cent.
US economic news
America’s monthly jobs report showed the jobs market last month rebounded to its highs in 2008. The Labor Department reported on Friday non-farm employment rose more than expected by 217,000 in May as the unemployment rate stayed steady at 6.3 per cent against expectations for a rise. The jobless rate matches the lowest read since September 2008 while the run of jobs creation is the longest since the end of the 1990’s.
Global markets
Following Friday’s gains on the back of the upbeat jobs report Wall Street continued to edge ahead on Monday: The Dow Jones Industrial Average firmed 19 points to close at 16,943, the S&P 500 added 2 points to close at 1,951 and the Nasdaq rose 15 points to close at 4,336.
European markets continued last week’s upwards momentum on Monday: London's FTSE 100 gained 17 points, France's CAC 40 gained 8 points and Germany's DAX gained 21 points.
Asian markets also moved higher on Monday: Japan’s Nikkei added 47 points, Hong Kong’s Hang Seng added 166 points, and China’s Shanghai Composite added 0.5 points.
The Australian share market advanced 0.5 per cent on Friday but lost ground over the first week of June: The S&P/ASX 200 index gained 27 points on Friday, trimming the weekly loss of 28.5 points to finish at 5,464. On the futures market the SPI is pointing 14 points higher.
Currencies
The Australian dollar gained slightly over last week and at 7:20am this morning has strengthened from Friday’s close to $US0.9354, 55.68 Pence Sterling, 95.91 Yen and 68.83 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance data for April
ANZ Banking Group (ASX:ANZ): Job advertisements series for May
National Australia Bank Limited (ASX:NAB): Monthly business survey for May
Upcoming shareholder meetings
Westfield Retail Trust (ASX:WRT) shareholders are gearing up to meet again at the end of next week for a vote on the proposed $70 billion restructure with Westfield Group (ASX:WDC). Over the weekend the trust's Chairman Dick Warburton affirmed the deal is fair and reasonable and comes with the backing of an independent expert despite opposition from some shareholders. The original meeting to vote on the deal was adjourned on May 29 after Westfield’s Chairman Frank Lowy said he would push ahead regardless of the voting outcome. Shares in Westfield Retail Trust fell 0.63 per cent on Friday to end the week at $3.16.
Home entertainment provider Quickflix Limited (ASX:QFX) has responded to media reports ahead of this week’s meeting to determine who will take control of the company. Shareholders will vote this Thursday to keep or spill the company’s board of directors after minority shareholders put forward a proposal to replace a director and the co-founders. Ahead of the meeting the movie DVD rental and streaming company also confirmed one of its shareholders who requested the meeting has now sold more than 80 per cent of their stake. Shares in Quickflix dropped 9.09 per cent on Friday following the announcement to end the week at $0.01.
Ex-dividends
James Hardie Industries plc (ASX:JHX) paying an unfranked dividend of 56.3 cents
Commodities
The price of gold dipped about $US2.00 over last week and has since firmed $1.40 to $US1,253.90 an ounce for the August contract on Comex.
Silver has risen $0.07 to $19.07 for July.
Copper has dipped $0.01 to $3.04 a pound.
Oil has gained $1.75 to $US104.41 a barrel for July light crude in New York.
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