The Australian share market looks set to open slightly higher this morning. US markets rose on Monday, with the Dow posting its 12th straight record close. Today investors across the globe will be focusing all their attention on Trump’s upcoming congressional address on Tuesday. It is widely expected the President will announce a raft of tax cuts and infrastructure spending in order to stimulate the economy.
US economic news Durable goods orders rose in 1.8 per cent in January over December’s figures. Bloomberg reported the uptick was driven by investment in machinery, computers and communications gear. Pending home sales fell however for January, with high mortgage rates and low supply resulting in a 2.8 per cent drop in January’s sales figures.
Economic NewsIn local economic news, due out today are new home sales numbers, Balance of payments and private sector credit.
MarketsWall Street closed up on Monday: The Dow Jones Industrial Average gained 0.1 per cent to close at 20,837 the S&P 500 added 0.1 per cent to close at 2,370 and the NASDAQ gained 0.3 per cent to close at 5,862.
European markets closed mixed: London’s FTSE rose 0.1 per cent, Paris remained flat and Frankfurt gained 0.2 per cent.
Asian markets closed lower: Tokyo’s Nikkei slipped 0.9 per cent, Hong Kong’s Hang Seng fell 0.2 per cent, and China’s Shanghai Composite dropped 0.8 per cent.
The Australian share market closed lower on Monday: The S&P/ASX 200 Index closed 15 points down to finish at 5,724. On the futures market the SPI is 8 points up.
Company NewsBega Cheese Limited
(ASX:BGA) has announced it has agreed to sell one of its spray dryers and Derrimut finishing plant to Mead Johnson Nutrition for AU$200M. As part of the transaction Bega has secured a 10 year service and access agreement with Mead. The release of capital will allow Bega to fund its recent purchase of Mondelez’ Australian grocery business including Vegemite. Shares in Bega Cheese Limited closed 1.23 percent higher on Monday at $5.74.
CurrenciesThe Australian Dollar at 8:30AM was buying $US76.77 cents, 61.72 Pence Sterling, 86.52 Yen and 72.52 Euro cents.
Commodities Gold has fallen $5.00 to $US1,253 an ounce for the April contract on Comex.
Silver is down $0.11 to $18.30 for March.
Oil has gained $0.07 to $US54.06 a barrel for April light crude.
Dividiends
