Local shares are poised for another flat start ahead of a slew of economic data and the RBA’s latest policy decision.
Overnight, U.S. stocks began the month on a positive note, with the rally nudging the Nasdaq Composite to 5,000 — a level not reached since 2000 for the tech-heavy index —while the Dow Jones Industrial Average also traded in record territory.
Stock’s march higher came amid economic reports that pointed to a slowdown in manufacturing activity as well as consumer spending. However, investors brushed off slightly disappointing data, seemingly content with the fact the U.S. economy is still growing, albeit, at a more modest clip.
What you need2know:
- SPI futures up 4pts at 5944
- AUD at 77.68 US cents, 93.374 Japanese yen, 69.46 Euro cents and 50.57 British pence
- On Wall St, S&P 500 +0.4%, Dow +0.6%, Nasdaq +0.6%
- In Europe, Stoxx 50 -0.2%, FTSE -0.1%, CAC -0.7%, DAX +0.08%
- Spot gold down $US7.93 or 0.65% to $US1,205.25 an ounce
- Brent oil down $US3.02 or 4.4% to $US59.56 per barrel
- Iron ore up 27 US cents at $US62.83
What’s on today
Australia balance of payments, building approvals, Reserve Bank of Australia board meeting on rates.
Stocks to watch
The following stocks will trade ex dividend today: AMP, Alumina, Amalgamated Holdings, Beacon Lighting, Bendigo Community Telco, BlueScope Steel, Centuria Capital, Cochlear, Collection House, Corporate Travel Management, Greencross, IPH, Infomedia, LifeHealthcare Group, Nick Scali, Perpetual, REA Group, Select Harvest, Servcorp.
UBS has a “buy” on TFS Corp and raised its price target to $2.65 a share from $2.60 a share after the sandalwood grower reported a “solid” result with the highlight being pharmaceutical orders.
Hartleys Research has a “buy” on Austal Limited and a 12-month target price of $1.80 a share.