The Australian share market looks set to open higher this morning following a rebound on Wall Street on Friday. Markets shrugged off fears of a trade war after a stronger than expected jobs report pushed stocks higher. The Dow Jones rose over 200 points with tech and financials the best performing sectors. The Nasdaq also ended the day deeply in the green with Facebook, Amazon, Netflix and Alphabet all rising.

US treasury yields jumped on the jobs report, with the benchmark 10-year yield trading at 2.89 percent and the two-year rising to 2.47 percent.

Global oil prices fell on Friday. The US dollar rose, making crude more expensive for buyers in Europe and Asia. Brent crude fell by around 1 per cent.

US eco news:

The U.S. economy added 223,000 jobs in May, above analyst expectations of 188,000,the increase of jobs reflected healthy gains in a range of industries, from manufacturing and transportation to health care and retailing.

Average hourly earnings, rose by 0.3 percent last month while the unemployment rate ticked down to 3.8 percent, its lowest level since the early 2000’s.

Local economic news due out this week:

Today we can look out for job ads for May and the business indicators for the March quarter which includes data on sales, profits, wages and inventories.

Tomorrow there will be five economic indicators released as well as the monthly meeting of the Reserve Bank Board. Interest Rates are expected to stay on hold.

Car sales, consumer sentiment, the services gauge, government finance and the quarterly balance of payments are also due for release.

On Wednesday, the ABS releases the March quarter estimate of economic growth – analysts expect the economy grew by 0.5-0.7 per cent in the quarter.

Finally on Thursday the ABS releases April data on exports and imports and the AiGroup will provide the construction industry figures for May.

Markets

Wall Street closed higher on Friday. The Dow Jones Industrial Average added almost 1 per cent to close at 24,635, the S&P 500 gained 1.1 per cent to close at 2,735 and the NASDAQ increased 1.5 per cent to close at 7554.

European markets closed higher on Friday: London’s FTSE gained 0.3 per cent, Paris added 1.2 per cent and Frankfurt was up almost 1 per cent.

Asian markets closed lower on Friday: Tokyo’s Nikkei closed 0.1 per cent lower, Hong Kong’s Hang Seng fell 0.1 per cent, and China’s Shanghai Composite lost 0.7 per cent.

Taking all of this into equation, the ASX futures are pointing to a 34pts gain. On Friday, the Australian share market closed lower with the S&P/ASX 200 Index losing 21 points to close at 5990.

Company news

Online shopping platform Kogan (ASX:KGN) has inked a deal with Vodafone New Zealand that will enable Kogan to enter the New Zealand telco market.

The CEO David Shafer says the company is thrilled to be partnering with Vodafone, the largest mobile network operator in New Zealand.

More details of the offering to consumers will be released closer to the launch date.

Shares in Kogan.com (ASX:KGN) closed 0.3 per cent higher to $9.12 on Friday.

Ex dividends

Infratil (ASX:IFT) is paying 9.87c unfranked.

Currencies

One Australian Dollar at 7:40AM was buying US75.69 cents, 56.75 Pence Sterling, 82.85 Yen and 64.91 Euro cents.

Commodities

Iron ore futures are pointing to a 0.7per cent drop.
Gold has lost $5.40 to $US1299 an ounce.
Silver has fallen 2c to $US16.44 an ounce.
Oil was down $1.23 to $US65.81 a barrel.

Cryptocurrencies

The three most traded cryptocurrencies are trading mixed: Bitcoin has added 1.1 per cent to US$7728, EOS has lost 0.8 per cent to US$14.74 and Ethereum has risen 4.3 per cent to US$619.

 

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