Australian shares are expected to open higher after encouraging earnings reports and reduced concern about Greece's debt problems helped US and European equities gain.
US stocks climbed as better-than-estimated earnings and economic data lifted confidence in the economy.
In particular, the Commerce Department said construction of homes and apartments rose to an annual rate of 591,000 in January, better than the 580,000 units forecast in a Thomson Reuters survey.
The Federal Reserve said production at the nation's factories, mines and utilities rose 0.9 per cent last month, representing the seventh straight month of growth.
The Dow Jones Industrial Average is up 40 points to 10,309 points. The S&P500 Index added 5 points to 1,100 and the NASDAQ gained 12 to 2,226.
To other international markets, European stocks rose. London’s FTSE gained 33 points, both Paris and Frankfurt are 56 points higher.
Asian stocks were higher with Hong Kong’s Hang Seng up 265 points, Tokyo’s Nikkei rose 273 and China’s Shanghai Composite is closed for Chinese New Year.
The Australian share market delivered its biggest daily gain in 2 1/2 months yesterday aided by solid earnings reports, stronger commodities prices and a positive lead from US and Asian markets.
The S&P/ASX 200 Index advanced 100 points higher at 4,668 and on the futures market the SPI200’s up 12 points.
On to currencies: the Aussie Dollar at 8:50AM was buying 89.91 US cents, 57.38 Pence Sterling, 82.06 Yen and 66.14 Euro cents.
In economic news out today: The National Australia Bank business survey for the December quarter, plus the Australian Bureau of Statistics releases international merchandise imports data for January.
There are a number of companies reporting today, including Qantas Airways, Austereo Group, WorleyParsons, Prime Media, Challenger Infrastructure Fund, Wesfarmers and ASX report first-half results.
AMP, Santos and Lihir Gold are among those due to report full-year results.
That brings us to company news about this morning: Shares in Lihir Gold (ASX:LGL) closed higher yesterday, up 3.21% to $2.89. Lihir is expected to play down the potential effects of a developing political crisis on its operations in Ivory Coast when it announces its full-year results today. Commentators say Ivory Coast risks further civil unrest after the nation’s president dissolved government and electoral commissions last week. So far elections have been delayed 6 times. Lihir’s Bonikro mine is located in the south of Ivory Coast. In 2009 Lihir spent US$27 million on exploration in the region and expects to spend a similar amount there in the year ahead. Lihir Gold posted a 2008 net profit of $157 million.
Qantas Airways (ASX:QAN) shares closed higher yesterday, adding 2.77% to $2.97. Qantas is expected to post a pre-tax profit for the first half of 2009/10 after passenger numbers grew and yields recovered in the aftermath of the global recession. Goldman Sachs JBWere estimates Qantas will post a pre-tax profit of $121 million. The result is on the back of improving yields, which are expected to continue into the second half of this year given the recent domestic and international ticket price rises. Credit Suisse has forecast pre-tax profit of $142.4 million and said the result was likely to be supported by earnings from its frequent flyer program and hedging activities. Qantas Airways posted a 2009 net profit of $117 million.
Taking a look at ex-dividends: SAI Global is going today with a 5.8 cent fully franked dividend. Healthscope is among those going ex-dividend tomorrow.
To commodities: Gold is 20 cents higher at US$1,120 an ounce for the April contract on Comex. For the March contract, silver fell 8 cents to US$16.07 and copper rose 2 cents at US$3.26.
The price of oil is up 19 cents to US$77.20 a barrel for March light crude in New York.
