The Australian share market looks set for a slow start this morning, after receiving flat to mixed leads from overseas trading.
US stocks finished marginally higher yesterday with a late rebound in financial stocks offsetting growing concerns the Chinese government may tighten credit – a move that could slow global economic growth.
Banking stocks put in a late rally after Senate Banking chief Christopher Dodd released a draft bill of broad regulatory changes aimed at preventing another financial crisis.
In economic news out of the US, the Federal Reserve reported that industrial production and capacity utilisation, which measure factory output, both rose more than expected last month.
Industrial production lifted 0.1% in February, after rising 0.9% in January, while capacity utilisation increased to 72.7% from 72.5% in January.
And the Federal Reserve meets tonight to discuss interest rates, with rates widely expected to stay on hold.
To the figures now and the Dow Jones Industrial Average closed higher, gaining 17 points to 10,642. The S&P500 Index was up 1 point and the NASDAQ fell 5 points to 2,362.
European stocks closed lower. London’s FTSE fell 32 points, Paris lost 36 points and Frankfurt was down 42 points.
Asian stocks were mixed with Hong Kong’s Hang Seng plunged 131 points, Tokyo’s Nikkei rose 1 point and China’s Shanghai Composite lost 36 points on expectations China’s central bank will increase monetary tightening measures to curb inflation.
The Australian share market closed lower yesterday. The S&P/ASX 200 Index finished 34 points lower to 4,784 and on the futures market the SPI200 is down 5 points. On to currencies: the Aussie Dollar at 8:45AM was buying 91.42 US cents, 60.74 Pence Sterling, 82.76 Yen and 66.88 Euro cents.
In local economic news: The Reserve Bank of Australia publishes the minutes of its March 2nd monetary policy meeting today, explaining why it raised interest rates and giving a comprehensive report on the economy.
To company news around this morning: Shares in Sunland Group Ltd (ASX:SDG) are up 1.91% to $0.785. The property developer has lifted its annual profit guidance by 15 to 20% due to earlier-than-expected house and land settlements in Queensland. The company now expects profit at June 30 to be in the range of $17 to 18 million. The revised guidance follows a review of scheduled settlements for house and land packages on the Gold Coast and in Victoria, which will see settlements take place during the current financial year. Managing Director Sahba Abedian says the group has 20 developments across Australia’s eastern seaboard and the Gold Coast and Victoria house and land projects are the strong performers. Last month, Sunland revealed plans to re-enter the high-rise market, capitalising on a return to the sector by investors. Sunland posted a loss of just over $145 million for fiscal 2009.
Avoca Resources Ltd (ASX:AVO) shares are down 4.06% to $1.89. An attempt by the gold miner to acquire the remainder of the Frog’s Leg mine in Western Australia from its Canadian joint venture partner has been rejected. The company acquired a 49% stake in the mine, located near Kalgoorlie, as part of its recent $126 million takeover of Dioro Exploration. Avoca Managing Director Rohan Williams says its joint venture partner, La Mancha Resources, which operates the mine, turned down the company’s offer to buy its 51% interest. Avoca Resource’s net loss for the 12 months to June 30, 2009, was $16.27 million.
Now to the companies going ex-dividend today: We have Billabong International with an 18 cent 50% franked dividend, M2 Telecommunications Group with a fully franked 5 cent dividend and Ramsay Healthcare with an 18.5 cent fully franked dividend. Going tomorrow are EVZ, Melbourne IT and Retail Food Group.
To commodities: Gold is up $3.60 at US$1,105.10 an ounce for the April contract on Comex. For the May contract silver gained 5 cents to US$17.08 and copper is down 6 cents at US$3.31.
And finally the price of oil fell $1.44 to US$79.80 a barrel for April light crude in New York.
