News: Outlook: ASX eyes softness before Medibank debut

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The SPI is pointing to soft start for the Australian share market despite a Wall Street rising and ending near record highs after China’s central bank lowered interest rates. On the company front the Australian Government’s highly anticipated float of Medibank Private Limited (ASX:MPL) will debut on the ASX today. Annual results are due from Aristocrat Leisure Limited (ASX:ALL) and companies holding annual general meeting include Harvey Norman Holdings Limited (ASX:HVN), Brickworks Limited (ASX:BKW), Retail Food Group Limite(ASX:RFG) and Mesoblast Limited (ASX:MSB).

 

Global markets

 

Wall Street lifted into the new week: The Dow Jones Industrial Average added 0.04 per cent to close at 17,818, the S&P 500 added 0.3 per cent to close at 2,069 and the Nasdaq added 0.9 per cent to close at 4,755.

 

European markets began Monday mixed: London's FTSE 100 fell 0.3 per cent, France's CAC 40 rose 0.5 per cent and Germany's DAX gained 0.5 per cent.

 

Asian markets started the week stronger: Japan’s Nikkei rose 0.3 per cent, Hong Kong’s Hang Seng soared almost 2 per cent, and China’s Shanghai Composite climbed 1.9 per cent.

 

The Australian share market posted a strong start to the week on the back of China’s surprise rate cut on Friday: The S&P/ASX 200 index climbed 58 points to close at 5,362 on Monday. On the futures market the SPI is 3 points lower. 

 

Currencies

 

The Australian dollar at 8:25am was buying $US0.8615, 54.87 Pence Sterling, 101.87 Yen and 69.27 Euro cents.

 

Economic news due out today 

 

ANZ Banking Group (ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey

 

Company news

 

All eyes will be on Medibank Private Limited (ASX:MPL) today amid expectations of a strong debut on the Australian Securities Exchange. Some analysts have predicted the stock could spike as much as $2.30 per share when it starts trading at 12pm Australian Eastern Daylight Time (AEDT). The health insurance company’s initial public offering raised $5.7 billion for the government with retail investors paying $2 per share and institutional investors paying $2.15 per share. 

 

Aristocrat Leisure Limited (ASX:ALL) will today release annual financial results after flagging its performance will be weighted to the second half. Over the first half the gaming solutions provider improved its profit by 9 per cent to $57.4 million on the back of stronger sales and a weaker local currency. Since then Aristocrat Leisure inked a deal to divest Aristocrat Lotteries for about $14.8 million and bought US competitor Video Gaming Technologies for $1.3 billion. Shares in Aristocrat Leisure fell 1.64 per cent to close at $6.60 on Monday ahead of today’s announcement. 

 

Ex-dividends

Duluxgroup Limited (ASX:DLX) paying a 10.5 cent fully franked dividend 

 

Commodities 

Gold has dipped $2.00 to $US1,196 an ounce for the December contract on Comex. 

Silver has slipped $0.02 to $16.38 for December. 

Copper has eased $0.03 to $3.00 a pound. 

Oil has lost $0.73 to $US75.78 a barrel for January light crude in New York.