All eyes are on the RBA’s monetary policy decision today and with gains in the US, despite weak jobs data, we’ve seen local markets push 1.2 per cent higher at noon.
The iron ore price sunk even further overnight but that didn’t stop investors pushing both Rio Tinto and BHP shares higher, in fact all major sectors were higher this morning.
Weakness in commodities prices has seen capital expenditure forecasts crashing and with low inflation and high unemployment market analysts are forecasting a cut in the RBA’s cash rate, the question remaining is whether it will be this month, or next.
FNN will be covering the announcement this afternoon, due at 2:30pm.
The S&P/ASX 200 index is 74 points up at 5,973. On the futures market the SPI is 84 points higher.
Economic news
The ABS has reported growth of 0.7 per cent for retail trade in February. The figure came in ahead of expectations and signals a recovery is under way in the sector.
Company news
BHP Billiton Limited
(ASX:BHP) has released a list of non-executive directors to be appointed to the board of its spinoff company South32. The mining giant says Frank Cooper, Peter Kukielski, Futhi Mtoba and Wayne Osbourn will join Chairmen elect David Crawford on the board. The BHP Billiton board has previously recommended that shareholders approve the demerger of South32 with the decision to be made at a meeting on 6th May this year. Shares in BHP are trading up 1.59 per cent at $30.70
Regenerative medicine company Regeneus Limited
(ASX:RGS) says it has successfully manufactured Progenza, an off-the-shelf cell therapy product, for clinical trial. The company says it is a manufacturing milestone and that it is now ready for its first in-human trial with the process now producing millions of doses from a single donor. CEO John Martin says the production of commercial quantities of stem cells from a single donor is critical to maximise dose-to-dose consistency. Shares in Regeneus are trading up 7.14 per cent at $0.15.
Best and worst performers All major sectors are higher today, the best performing sector is materials, gaining 1.6 per cent to 9,218. Shares in Sandfire Resources NL
(ASX:SFR) have risen 4.19 per cent and trading at $4.72. Shares in Iluka Resources Limited
(ASX:ILU) and Northern Star Resources Limited
(ASX:NST) are also stronger.
The sector with the least losses is REITs, gained 0.8 per cent to 1,311. Shares in Federation Centres Limited
(ASX:FDC) are flat at $3.07. Shares in Westfield Corporation Limited
(ASX:WFD) are flat and Cromwell Group
(ASX:CMW) is trading higher.
Gold and the dollar
Gold is trading at $US1,214 an ounce.
The Australian dollar is buying $US0.7592.
