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Following small gains in US markets the Australian share market looks set to open slightly higher ahead of October data on retail trade and international trade figures.
US economic news
The US added another 208,000 jobs last month with private employers now hiring people at an average rate of 186,000 a month for close to 5 years straight.The Institute for Supply Management said the November services index came in at 59.3, well above analyst expectations and just below its post recession high of 59.6.Meanwhile the Federal Reserve reported further expansion in economic activity as lower gasoline prices gave consumers more money to spend.Markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close at 17,913, the S&P 500 added 0.4 per cent to close at 2,074 and the NASDAQ improved 0.4 per cent to close at 4,774.European markets closed mixed: London’s FTSE slipped 0.4 per cent, Paris advanced 0.08 per cent and Frankfurt firmed 0.4 per cent.Asian markets were also mixed: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng lost nearly 1 per cent, and China’s Shanghai Composite lifted 0.6 per cent.The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 41 points up to finish at 5,322. On the futures market the SPI is 11 points up.Currencies
The Australian Dollar at 8.30AM was buying 84.06 US cents, 53.6 Pence Sterling, 100.72 Yen and 68.31 Euro cents.Economic news
Due out today from the Australian Bureau of Statistics is international trade in goods and services for October as well as retail trade for OctoberCompany news
Retail Food Group Limited (ASX:RFG) says it has settled on its $164 million takeover of Gloria Jeans coffee. The food brand manager managed to extend its senior debt facilities from $135 million to $253 million with 90 per cent of the debt having an extended maturity date to September 2017. RFG CEO Tony Alford says the deal transforms RFG into a global franchising powerhouse of 2400 outlets whilst providing access to numerous international markets and new revenue platforms including the growing ‘in home’ coffee capsule market. Shares in Retail Food Group Limited (ASX:RFG) closed 0.88 per cent stronger yesterday at $5.73.New Zealand based Intueri Education Group Limited (ASX:INE) says it will acquire Academy Group, one of New Zealand’s oldest private education providers. Academy New Zealand is a category 1 establishment specialising in practical, employment focussed courses including motor trades, pharmacy and floristry. The purchase, at 4 times 2015 EBIT, will extend the programmes Intueri can offer as well as provide strategic and financial benefits. The acquisition will increase earnings by NZD$125 million before synergies are realised. Shares in Intueri Education last traded 3.46 per cent lower at $2.51.
Ex-dividends
3 companies are trading ex-dividend today: The Australian Government Index Fund (ASX:AQF) will pay 2.5 cents fully franked, Collins Foods Limited (ASX:CKF) will pay 5 cents fully franked and Metcash (ASX:MTS) has an interim dividend of 6.5 cents also with full franking credits.Commodities
Gold is up $9.30 to $US1,209 an ounce for the February contract on Comex. Silver is down $0.04 to $16.41 for December. Copper is down $0.02 at $2.87 a pound. Oil is up $0.50 at US$67.38 a barrel for January light crude in New York.
