The SPI is pointing to a positive start for the Australian share market after Wall St lifted off the lows of the session. US markets returned to trade on Tuesday after breaking for the Martin Luther King Jr federal public holiday on Monday. Traders absorbed a series of corporate earnings reports and China’s quarterly growth numbers amid expectations for European stimulus on Thursday. Across commodity markets iron ore has hit a new five-year low and oil prices have shed close to 5 per cent but gold is edging to a five-month high.
Global markets
Wall Street posted a soft start to its trading week: The Dow Jones Industrial Average added 0.03 per cent to close at 17,516, the S&P 500 firmed 0.2 per cent to close at 2,023 and the Nasdaq added 0.4 per cent to close at 4,655.
European markets moved higher on Tuesday: London's FTSE 100 lifted 0.5 per cent, France's CAC 40 lifted 1.2 per cent and Germany's DAX lifted 0.1 per cent.
Asian markets rose on Tuesday: Japan’s Nikkei gained 2.1 per cent, Hong Kong’s Hang Seng gained 0.9 per cent, and China’s Shanghai Composite gained 1.8 per cent.
The Australian share market ended almost where it started yesterday after China’s growth numbers and the IMF’s cut to its global growth forecast: The S&P/ASX 200 index closed 1 point lower at 5,308 on Tuesday. On the futures market the SPI is 17 points higher.
Currencies
The Australian dollar at 8:20am was buying $US0.8177, 53.98 Pence Sterling, 97.16 Yen and 70.8 Euro cents.
Economic news due out today
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Survey of Consumer Sentiment
Company news
BHP Billiton Limited
(ASX:BHP) will today follow its rival Rio Tinto Limited
(ASX:RIO) and release its December quarter production report. Australia’s largest company is expected to post more iron ore production records over the second quarter of its financial year. Shares in Rio Tinto dipped yesterday despite reporting a 13 per cent rise in quarterly iron ore shipments and a 12 per cent gain in quarterly iron ore production.Shares in BHP Billiton fell 0.83 per cent to close at $27.48 on Tuesday ahead of today’s output results.
360 Capital Office Fund
(ASX:TOF) has improved its annual earnings per unit guidance to 18.4 cents per unit and maintained its distribution guidance. The real estate investment trust says the increase has been driven by the recent accretive acquisition of Botanicca in Melbourne. 360 Capital has also been aided by the fund’s unit buy back and debt management initiatives. Shares in 360 Capital Office Fund rose 0.97 per cent to close at $2.09 on Tuesday ahead of the guidance announcement.
Ex-dividends
Countplus Limited
(ASX:CUP) paying a 2 cent fully franked dividend
Commodities
Gold has risen $16 to $US1,293 an ounce for the February contract on Comex.
Silver has gained $0.22 to $17.97 for March.
Copper has eased $0.03 to $2.58 a pound.
Oil has slipped $2.45 to $US46.68 a barrel for February light crude in New York.
