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Following negative leads from US markets reacting to subdued GDP figures, the Australian share market looks set to open flat this morning ahead of an RBA rate cut decision this week. Reporting season is coming to an end with investors looking for something to propel the market above the 6000 level today.US Economic news
The US commerce department says gross domestic product in the States came in at 2.2 per cent for the quarter. However that was lower than the 2.6 per cent estimate last month and down from the 5 per cent expansion the preceding quarter. This week all eyes are on the release of US non-farm payrolls due on Friday for the strongest signal yet that the US economy is out of the doldrums.Markets
Wall Street closed lower ahead of the weekend: The Dow Jones Industrial Average slipped 0.5 per cent to close at 18,133, the S&P 500 shed 0.3 per cent to close at 2,105 and the NASDAQ lost 0.5 per cent to close at 4,964.European markets closed mixed: London’s FTSE was down 0.04 per cent , Paris gained 0.8 per cent and Frankfurt added 0.7 per cent.Asian markets closed mixed: Tokyo’s Nikkei added 0.06 per cent, Hong Kong’s Hang Seng dropped 0.3 per cent, and China’s Shanghai Composite advanced 0.4 per cent.The Australian share market closed up on Friday: The S&P/ASX 200 Index closed 20 points up, adding 47 on the week to finish at 5,929. On the futures market the SPI is 4 point up.Currencies
The Australian Dollar at 8.30AM was buying 78.01 US cents, 50.6 Pence Sterling, 93.46 Yen and 69.81 Euro cents.Economic news
This week’s highlights include Australian home prices due later today, an RBA interest rate meeting tomorrow and Q4 GDP due Wednesday.Company news
ERM Power Limited (ASX:EPW) has completed the sale of its West Australian gas assets to Empire Oil and Gas (ASX:EGO). The sale is a move to restructure the company’s power assets into a more capital efficient growth model allowing the energy provider to focus on its retail business. ERM recently entered the US energy market with the purchase of Texan energy retailer SPG Energy Group. Shares in ERM Power closed 1.38 per cent lower on Friday at $2.15.
Transpacific Industries Group Limited (ASX:TPI) announced today it has completed the purchase of the Melbourne Regional Landfill business from Boral Limited (ASX:BLD). TPI is hoping the acquisition will secure its long term position in the Melbourne waste management market. The deal should lower costs for TPI as it will now be delivering collected waste to its own site rather than a third party. Shares in TPI were savaged last week after the company reported a net loss of $42 million for the half year. Shares closed 0.7 per cent stronger on Friday at $0.71.Commodities
Gold is up $3.00 to $US1,213 an ounce for the April contract on Comex. Silver is down 7 cents to $16.56 for May. Copper is steady at $2.69 a pound. Oil is up $1.59 at US$49.76 a barrel for April light crude in New York.
