Newcrest Mining, Stockland and Ansell are first off the rank as financial results season accelerates in the days ahead, potentially helping to extend last week's rally in local shares.
What you need2know:
• SPI futures up 10 pts
• AUD at 93.18 US cents, 95.34 Japanese yen, 69.63 Euro cents and 55.68 British pence
• On Wall St, S&P 500 -0.01%, Dow -0.3%, Nasdaq +0.3%
• In Europe, Euro Stoxx 50 -0.8%, FTSE +0.1%, CAC -0.7%, DAX -1.4%
• Spot gold lost 0.7% to $US1304.83 an ounce
• Brent oil is at $US103.53 per barrel
• Iron ore added 0.2% to $US93.40 per metric tonne
What’s on today
Australia: Newcrest Mining, Stockland, Ansell, Aurizon Holdings report earnings; Australia VFACTS July new motor vehicle sales, EU June trade balance.
Stocks to watch
BHP Billiton is pushing ahead with a demerger of its non-core assets, with chief Andrew Mackenzie preparing to unveil, as soon as this week, a new $14 billion resources giant that will instantly become one of Australia’s biggest miners.
Goldman Sachs has maintained a “neutral” recommendation on Domino’s Pizza, with a 12 month price target of $21.00, down from the current share price of $23.39.
CIMB has an “add” recommendation on Primary Health Care and a $5.57 target price.
In late New York trading on Friday, the US dollar was down 0.1 per cent against the yen at 102.33. The euro, meanwhile, tumbled versus the Swiss franc to its lowest since January 2013. The US currency slid versus the euro as well, with the latter up 0.2 per cent to $US1.3393. The greenback’s broad losses pushed the dollar index down 0.2 per cent to 81.44.
On Friday, St. Louis Fed president James Bullard said the market isn’t yet in sync with the Fed on interest rates. The market is trading too dovishly compared to the committee,” Bullard said in an interview on SiriusXM satellite radio. “I think that’s probably a mistake.”
Minutes from the Fed’s late July meeting are due next Wednesday in the US, followed by Thursday’s start of a three-day central bankers’ conference hosted by the Fed in Jackson Hole, Wyoming
Copper has fallen nearly 5 per cent since touching a near-five-month peak on July 8 and posted a 1.9 per cent fall for this week, its steepest drop in four weeks.
Book squaring at the end of the week was a feature in metals on Friday but more losses were likely next week, said analyst Edward Meir at broker INTL FCStone. “We think global macro readings (ex-US) have clearly shifted to the negative side, particularly out of China and Europe and this will likely pressure the commodity group further heading into next week,” he said in a note.
The silver market entered a new era in benchmarking on Friday after a regulatory drive for more transparency in price setting brought the 117-year-old silver ‘fix’ to an end.
US stocks ended mixed on Friday, paring an earlier selloff sparked by reports of Ukraine shelling a Russian armoured column. The tech-heavy Nasdaq was lifted by gains in stocks like Gilead and Microsoft.
The CBOE Volatility Index, Wall Street’s fear barometer, shot up as much as 20.3 per cent to a session high at 14.94. At the close, though, the VIX was up 5.9 per cent at 13.15.
Shares of Monster Beverage jumped 30.5 per cent to $US93.49 a day after Coca-Cola Co said it was buying a 16.7 per cent stake in the company for $US2.15 billion.
In the latest snapshot of the economy, US manufacturing output rose broadly in July and automobile production recorded its largest increase in five years.
European stocks closed lower, giving up earlier solid gains after news that Ukrainian artillery had destroyed part of a Russian military column spooked investors.
Shares in the world’s second-largest platinum producer Impala Platinum fell more than 1.0 per cent after it warned a five-month strike could slash its full-year earnings by up to 75 per cent.
In economic news, Britain’s output expanded by 0.8 per cent in the second quarter of 2014 compared with output in the first three months of the year, official data showed on Friday. Gross domestic product (GDP) grew by 3.2 per cent in the April-June period.
What happened on Friday
Strong earnings from some of Australia’s largest and most widely owned companies helped the Australian sharemarket post its best week since February.
The benchmark S&P/ASX 200 surged 131.3 points, or 2.4 per cent, to 5566.5 for the week, while the All Ordinaries gained 130 points, or 2.4 per cent, to 5559.6.
On Friday, the ASX 200 added 18 points, or 0.3 per cent, while the All Ordinaries rose 16.7 points, or 0.3 per cent. Overall, company results have been solid thus far, abating concerns that valuations are stretched.