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After gaining 0.4 per cent last week the Australian share market looks set to a soft start to Monday’s session. Weak leads follow on from America’s key monthly jobs report which showed a drop in the jobless rate but less jobs growth than expected. US markets ended broadly unchanged in response while still hovering near record highs.
Over the weekend China’s trade surplus was shown to have expanded ahead of today’s Chinese inflation data. On the local front a busy week on the economic calendar will start with housing finance data today. Across commodity markets the price of gold has gained, iron ore has firmed and oil is also trading higher.
US economic news
The Labor Department reports US employers created 214,000 new jobs in October and the unemployment rate fell to 5.8 per cent, the lowest read since July 2008. Jobs growth came in weaker than the 235,000 gain that was expected while the jobless rate was expected to stay steady at 5.9 per cent.
Global markets
After lifting 0.7 per cent over last week Wall Street posted a lacklustre end to Friday’s session: The Dow Jones Industrial Average added 0.1 per cent to close at 17,574, the S&P 500 added 0.03 per cent to close at 2,032 and the Nasdaq lost 0.1 per cent to close at 4,633.
European markets fell more than 1 per cent last week and finished Friday mixed: London's FTSE 100 firmed 0.3 per cent, France's CAC 40 fell 0.9 per cent and Germany's DAX dropped 0.9 per cent.
Asian markets put in a mixed trading performance over last week and on Friday: Japan’s Nikkei rose 0.5 per cent, Hong Kong’s Hang Seng fell 0.4 per cent, and China’s Shanghai Composite slipped 0.3 per cent.
After advancing more than 4 per cent over the month of October the Australian share market continued to lift into the first week of November: The S&P/ASX 200 index rose 43 points on Friday, extending the weekly rally of 22.5 points to finish at 5,549. On the futures market the SPI is 3 points lower.
Currencies
After shedding $US0.024 against the greenback last week the Australian dollar at 7:40am was buying $US0.8663, 54.56 Pence Sterling, 99.1 Yen and 69.44 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Housing finance figures for September are due following Augusts’ figures which showed home loans fell by 0.9 per cent
Company news
Qantas Airways Limited (ASX:QAN) has unveiled a new campaign called ‘Feels Like Home’ which launched over the weekend. Australia’s biggest airline says the message is based on what the carrier has been doing for almost 100 years, bringing people home. While the airline has not revealed how much the marketing will cost CEO Alan Joyce says now was the right time to invest in reinforcing what makes Qantas special. Ads will run on television, cinema, outdoor, in print and online and the campaign has been flagged as one which could run long term. Shares in Qantas Airways rose 1.81 per cent on Friday to end the week at $1.685.
The brand of Coca-Cola Amatil Limited’s (ASX:CCL) US parent company has been ranked the fourth most valuable in the world by Forbes. The American business magazine’s annual study shows the value of Coca-Cola’s brand rose 2 per cent to $US56.1 billion. The report placed Apple first, Microsoft second and Google third based on their earnings and relevance. Closer to home Coca-Cola Amatil last week launched a marketing campaign targeting teens and social media engagement. Shares in Coca-Cola Amatil rose 0.42 per cent on Friday to end the week at $9.49.
Ex-dividends
Managed Accounts Holdings Limited (ASX:MGP) paying a 0.2 unfranked dividend
Waterco Limited (ASX:WAT) paying a 3 cent fully franked dividend
Westpac Banking Corporation (ASX:WBC) paying a 92 cent fully franked dividend
Commodities
After sinking almost $60 last week the price of gold has rebounded $11.40 to $US1,170 an ounce for the December contract on Comex.
Silver has risen $0.30 to $15.71 for December.
Copper has firmed $0.02 to $3.04 a pound.
Oil has added $0.74 to $US78.65 a barrel for December light crude in New York.
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