The Australian share market is likely to open stronger this morning after gains on Wall Street overnight and higher precious metal and oil prices.
US stocks rallied, led by the tech, industrial and materials sectors, driving the Dow, Nasdaq and S&P 500 to 18-month highs.
Stocks initially struggled out of the gate, but turned higher following the release of a better-than-expected housing report that suggested a slow economic rebound.
The National Association of Realtors revealed existing home sales fell for the third consecutive month to a 5.02 million unit rate in February from a 5.05 million unit rate in January.
They had been expected to drop to a lower rate of 5 million.
To the figures now and the Dow Jones Industrial Average was up 103 points to 10,884 – the highest close since September 2008.
The S&P500 Index closed 8 points higher at 1,174 and the NASDAQ gained 20 points at 2,415.
European stock markets closed higher, shrugging off concerns about how the Greek debt crisis will be resolved.
London’s FTSE gained 29 points, Paris rose 25 points and Frankfurt added 30 points.
Asian stocks are mixed, Hong Kong’s Hang Seng is up 55 points, Tokyo’s Nikkei lost 51 points and China’s Shanghai Composite fell 21 points.
The Australian share market closed higher yesterday. The S&P/ASX 200 Index finished 45 points stronger at 4,875 and on the futures market the SPI200 was up 35 points. On to currencies: the Aussie Dollar at 8:30AM was buying 91.90 US cents, 61.10 Pence Sterling, 83.13 Yen and 68.06 Euro cents.
In local economic news: The Department of Education, Employment and Workplace Relations releases its skilled jobs vacancies report for January.
To company news around this morning: Shares in Fortescue Metals Group Ltd (ASX:FMG) closed higher yesterday, gaining 0.84% to $4.79. The iron ore miner says it may sell major stakes in its magnetite projects in Western Australia to foreign steel mills. CEO Andrew Forrest says the company would be happy to sell up to 50% of its holdings in the projects for the right price. Mr Forrest says the steel mill would operate any associated magnetite processing facility. But he has ruled out an equity raising to fund the company’s $9 billion Solomon hematite project in the Pilbara region, which will include the construction of new rail and port facilities. Fortescue Metals Group reported a profit of $626.13 million for fiscal 2009.
Shares in Nuplex Industries Ltd (ASX:NPX) rose 0.39% at $2.56. The resins and specialty chemicals supplier has agreed to acquire the goodwill of the Australian and New Zealand ingredient business of the Med-Chem group of companies. Nuplex says the deal is expected to lift the earnings of its specialties business by over 15% for the first 12 months. Managing Director John Hirst says the addition of the Med-Chem product range, which includes starch and starch derivatives, will strengthen Nuplex’s specialties offering to the food and nutrition sectors.The other assets of the Med-Chem group remain with the current owners. Nuplex Industries posted a $13.46 million net profit for the 2009 financial year.
There are two companies going ex-dividend today – Peet with a 4 cent fully franked dividend and Prime Media Group with a fully franked 1.2 cent dividend.
To commodities: Gold is up $4.20 at US$1,103.50 an ounce for the May contract on Comex. Silver rose 9 cents to US$17.01 and copper is steady at US$3.37.
And the price of oil gained $0.31 to US$81.91 a barrel for May light crude in New York.
