The local sharemarket looks set to extend gains following positive overseas leads. A 5 to 6 percent surge in oil prices gave support to energy stocks on Wall Street, including Chevron and Schlumberger. This broad-based bounce back in commodity prices also helped push the Australian Dollar to a two-month high.
US Manufacturing activity slowed to its lowest level since October 2012. Data released by Markit showed the Flash Manufacturing PMI hit 51 in February, down from 52.4 a month earlier.
Markets
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1.4 per cent to close at 16,621, the S&P 500 added 1.45 per cent to close at 1,946 and the NASDAQ gained 1.5 per cent to close at 4,571.
European markets closed up: London’s FTSE gained 1.5 per cent, Paris gained 1.8 per cent and Frankfurt gained 2 per cent.
Asian markets closed up: Tokyo’s Nikkei added 0.9 per cent, Hong Kong’s Hang Seng gained 0.9 per cent also, and China’s Shanghai Composite gained 2.35 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 48 points up to finish at 5,001. On the futures market the SPI is 39 points up.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US0.7229 cents, 51.11 Pence Sterling, 81.62 Yen and 65.57 Euro cents.
Economic news
Due out today from ANZ-Roy Morgan is the weekly consumer confidence survey Also today, investors will receive comments from ACCC chairman Rod Sims and RBA payment policy department head Tony Richards who are both scheduled to speak in Sydney.
Company news
BHP Billiton Limited
(ASX:BHP) has reported a $US5.67 billion attributable loss for the half year ended 31 December 2015. The miner declared a US16c dividend, its lowest since February 2005. CEO Andrew Mackenzie said slower growth in China and the disruption of OPEC have resulted in lower prices than expected. Mr Mackenzie said the company remains resilient with assets that generate free cash flow through the cycle and a strong balance sheet. BHP Billiton also announced an executive reshuffle as the company moves to a more simplified operating model. Shares in BHP Billiton closed 3.43 per cent up yesterday at $17.18.
Downer EDI Limited
(ASX:DOW) has signed an MOU with strategic metals company TNG Limited. Under the terms of the MOU the companies will work together to secure Downer’s involvement as a key development partner involved in the construction and operation of the Mount Peake Vanadium-Titanium-Iron Project in the Northern Territory. Downer EDI’s first-half financial results highlighted a 24 percent fall in net profit to $72.1 million. Shares in Downer EDI closed 3.15 per cent up yesterday at $3.28.
Ex-dividends | Name | Code | Date | Amount(cents) | Franking |
| AGL Energy Limited. | AGL | 23/02/16 | 32.0 | 100 |
| Amcor Limited | AMC | 23/02/16 | 26.7 | 0 |
| Australian United In | AUI | 23/02/16 | 15.5 | 100 |
| Diversified United | DUI | 23/02/16 | 6.5 | 100 |
| Lendlease Group | LLC | 23/02/16 | 30.0 | 0 |
| Magellan Fin Grp Ltd | MFG | 23/02/16 | 51.3 | 100 |
| Mortgage Choice Ltd | MOC | 23/02/16 | 8.0 | 100 |
| Macq Media Ltd | MRN | 23/02/16 | 2.0 | 100 |
| Origin Energy | ORG | 23/02/16 | 10.0 | 0 |
| Sedgman Limited | SDM | 23/02/16 | 3.5 | 100 |
| Sedgman Limited | SDM | 23/02/16 | 8.8 | 100 |
Commodities
Gold has lost $21.60 to $US1,209 an ounce for the April contract on Comex.
Silver has lost $0.17 to $15.23 for March.
Copper has added $0.04 to $2.12 a pound.
Oil has gained $1.59 to $US33.34 a barrel for March light crude in New York.
