Australian shares are expected to open higher this morning, after a positive finish on Wall Street overnight and firmer commodities prices during offshore trading.
US stocks notched up a fifth straight day of gains as stronger than expected corporate results were released and March retail sales pushed the S&P 500 past the 1,200 mark for the first time in 18 months. The government said retail sales rose 1.6% in March for the third month in a row. And in other economic news another report showed consumer prices rose 0.1% in March, in line with CPI predictions.
The Dow Jones Industrial Average finished 104 points higher at 11,123. The S&P500 Index is up 13 points at 1,211 and the NASDAQ rose 39 points to 2,505.
European stock markets closed higher. London’s FTSE gained 35 points, Paris advanced 26 points and Frankfurt rose 48 points.
Asian stocks were stronger. Hong Kong’s Hang Seng added 18 points, Tokyo’s Nikkei is up 44 points and China’s Shanghai Composite gained 5 points.
Australian stocks finished higher yesterday with the All Ordinaries index breaking through 5000 point barrier but dipping under that range before the close. The S&P/ASX 200 Index finished 43 points stronger at 4,995 and on the futures market the SPI200 is up 32 points. On to currencies: the Aussie Dollar at 8:45AM was buying 93.59 US cents, 60.51 Pence Sterling, 87.41 Yen and 68.54 Euro cents.
In economics news, the Westpac-Melbourne Institute surveys of consumer inflationary expectations and employment expectations are due out today.
To company news around this morning: ANZ Banking Group (ANZ) shares closed 1.93% higher yesterday to $25.91. ANZ says it will defend a claim of nearly $100 million that was lodged yesterday over the bank's handling of the collapse of Primebroker Securties. The liquidator of Primebroker lodged the claim in the Federal Court on behalf of creditors. As part of the $97.7 million lawsuit, liquidators are seeking the return from ANZ of $86 million worth of repayments made to the bank by Primebroker in the months before it collapsed. The claims allege ANZ sought to protect itself in the lead-up to the Primebroker’s demise by taking a secured charge over the group's assets. An ANZ spokesman said the bank would "vigorously" defend the new claims. Looking at ANZ’s 2009 results, the bank posted nearly a $3 billion net profit.
Sigma Pharmaceuticals (ASX:SIP) shares closed higher yesterday, up 4.85% to 54 cents. Sigma is reportedly trying to negotiate with its key customers, Pulse Pharmacy and Chemist Warehouse to try and stop them from defecting to rivals. The Australian Financial Review is reporting that Sigma has offered to partially back track on a reduction in payment terms for drugs and is offering a better deal for generic drugs. Sigma, which is Australia’s largest generic drugs company is trying to stop its clients switching to other companies like Australian Pharmaceuticals or Symbion. Last week, Sigma cut credit offered to customers by about $90 million by January. Sigma is being forced by its banks to rein in generous trading terms given to clients in order to pay of its debt and improve its cash flow position. Sigma Pharmaceuticals posted a $389 million loss in 2009.
Taking a look at companies going ex-dividend today: Ausdrill is going with a 5 cent fully franked dividend and FFI Holdings with a 10 cent fully franked dividend.
To commodities: The price of gold rose $6.20 to US$1,159 an ounce for the May contract on Comex. Silver improved 17 cents to US$18.40 and copper is up 1 cent at just under US$3.62.
And the price of oil rebounded and is up $1.79 to US$85.84 a barrel for May light crude in New York.
