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Following a weekly gain of 0.3 per cent the Australian share market looks set for a positive start to the new week after Wall Street hit more record highs on Friday. The S&P 500 and Dow Jones Industrial Average both peaked to record closing highs at the end of last week while the Nasdaq also closed higher. Commodity prices have been given a boost with oil rising due to conflict in the Middle East, gold remaining buoyant after last week’s US Federal Reserve meeting and iron ore firming. 

 

While the week ahead will see little major news on the Australian economic calendar the spotlight will be on China’s HSBC Flash Manufacturing PMI due out today. Expectations are for the preliminary gauge of Chinese manufacturing activity to improve from 49.4 to 49.8, but remain under 50 which indicates contraction. 

 

Global markets

 

Wall Street topped off a 1.4 per cent weekly gain with a positive session on Friday: The Dow Jones Industrial Average rose 26 points to close at 16,947, the S&P 500 rose 3 points to close at 1,963 and the Nasdaq rose 9 points to close at 4,368.

 

European markets were mainly higher over last week but closed mixed on Friday: London's FTSE 100 added 17 points, France's CAC 40 lost 22 points and Germany's DAX lost 17 points.

 

Asian markets traded and finished mixed over last week: Japan’s Nikkei lost 12 points, Hong Kong’s Hang Seng added 26 points, and China’s Shanghai Composite added 3 points.

 

The Australian share market sank to session lows and closed almost 1 per cent down on Friday but rose over the week: The S&P/ASX 200 index retreated 49 points on Friday, trimming the weekly gain of 14 points to finish at 5,419.5. On the futures market the SPI is pointing 10 points higher. 

 

Currencies 

 

After trading above $US0.94 last week the Australian dollar has slipped and at 7:20am was buying $US0.9377, 55.12 Pence Sterling, 95.72 Yen and 69.01 Euro cents.

 

Company news

 

All eyes will be on Ten Network Holdings Limited (ASX:TEN) today after media reports suggested the troubled television network could be in the sights of private equity firms. The speculation comes after the broadcaster warned last week its revenues could fall by as much as 4.5 per cent over the current 2014 financial year. Ten has blamed a volatile advertising market for the forecast but vowed to remain focussed on improving ratings through managing costs. Shares in Ten Network Holdings plunged about 18 per cent over last week and 9.26 per cent on Friday to end the week at $0.245. 

 

Fortescue Metals Group Limited (ASX:FMG) could be set for some more reprieve after the price of iron ore gained 1.5 per cent to over $US92 per metric tonne. After a month of falls the iron ore miner was given a boost from its founder’s backing in the stock last week. Andrew Forrest spent almost $7 million buying up Fortescue’s stock last week, taking his total purchases of the stock to about $70 million over the past nine months. Shares in Fortescue Metals Group gained about 4 per cent over last week but closed Friday steady at $4.22. 

 

Ex-dividends today

 

Ausmani Limited (ASX:ABF) paying a 0.075 cent fully franked dividend

HGL Limited (ASX:HNG) paying a 2 cent fully franked dividend

 

Ex-dividends tomorrow

 

Village Roadshow Limited (ASX:VRL) paying a 15 cent fully franked dividend

 

Commodities 

 

After gaining about 3 per cent over last week the price of gold is trading $22.80 higher at $US1,316.60 an ounce for the August contract on Comex. 

Silver has lifted $0.30 to $20.95 for July. 

Copper has risen $0.06 to $3.12 a pound. 

Oil has gained $0.78 to $US106.83 a barrel for August light crude in New York.