Following yesterday’s steep declines the Australian share market looks to rebound on the back of strong gains on Wall Street. American traders were encouraged by merger and acquisition action and data showing consumer spending rose last month. Elsewhere the price of gold, iron ore and oil continue to remain weak and the Australian dollar has fallen under $US0.77.
Global markets
Wall Street started the week stronger: The Dow Jones Industrial Average rallied 1.5 per cent to close at 17,976, the S&P 500 rallied 1.2 per cent to close at 2,086 and the Nasdaq rallied 1.2 per cent to close at 4,947.
European markets moved higher on Monday: London's FTSE 100 gained 0.5 per cent, France's CAC 40 gained almost 1 per cent and Germany's DAX gained 1.8 per cent.
Asian markets started the week stronger: Japan’s Nikkei rose 0.7 per cent, Hong Kong’s Hang Seng rose 1.5 per cent, and China’s Shanghai Composite rose 2.6 per cent.
The Australian share market fell 1.3 per cent into the new week with resources leading declines amid sinking commodity prices yesterday: The S&P/ASX 200 index tumbled 74 points to close at 5,846 on Monday. On the futures market the SPI is 49 points stronger.
Currencies
The Australian dollar at 7:30am was buying $US0.7642, 51.67 Pence Sterling, 91.86 Yen and 70.64 Euro cents.
Economic news due out today
Reserve Bank of Australia: Financial aggregates for February
Housing Industry Association: New home sales for February
ANZ Banking Group
(ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey
Company news
The Capital Group has boosted its stake in Fortescue Metals Group Limited
(ASX:FMG). The American fund manager lifted its interest in the Pilbara focussed iron ore miner to 7.08 per cent yesterday from 6.05 per cent. The move has been made in the wake of steep iron ore price falls which has subsequently seen Fortescue’s stock drop about 30 per cent this year. Shares in Fortescue Metals Group fell 3.75 per cent to close at $1.925 on Monday.
Shares in Qantas Airways Limited
(ASX:QAN) took off against a benchmark fall after reporting traffic and capacity statistics in February. Australia’s largest airline attributed strong group domestic yields to increased demand during the Cricket World Cup. The company’s international operations were supported by high demand on most Asia routes over the Chinese New Year period. Shares in Qantas Airways gained 2.03 per cent to close at $3.01 on Monday.
Commodities
Gold has declined $15 to $US1,185 an ounce for the April contract on Comex.
Silver has fallen $0.39 to $16.67 for May.
Copper has firmed $0.01 to $2.78 a pound.
Oil has dropped $0.19 to $US48.68 a barrel for May light crude in New York.
Ex-dividends
AP Eagers Limited
(ASX:APE) paying an 18 cent fully franked dividend
APN Outdoor Group Limited
(ASX:APO) paying a 1 cent fully franked dividend
ARB Corporation Limited
(ASX:ARP) paying a 13 cent fully franked dividend
BPS Technology Limited
(ASX:BPS) paying a 2.25 cent unfranked dividend
Genesis Energy Limited
(ASX:GNE) paying a 7.6716 cent unfranked dividend
Lycopodium Limited
(ASX:LYL) paying a 1.5 cent fully franked dividend
Metlifecare Limited
(ASX:MEQ) paying a 1.2261 cent unfranked dividend
SG Fleet Group Limited
(ASX:SGF) paying a 4.725 cent fully franked dividend
Sigma Pharmaceutical Limited
(ASX:SIP) paying a 3 cent fully franked dividend
Sealink Travel Group Limited
(ASX:SLK) paying a 3.8 cent fully franked dividend
Virtus Health Limited
(ASX:VRT) paying a 13 cent fully franked dividend
