The Australian share market is expected to open higher after a mostly positive lead from the offshore session, with Wall Street closing higher and oil and silver prices firmer. But gold and copper prices were weaker.
US stocks gained as investors reacted to a rise in Exxon Mobil earnings and brushed off concerns about European debt problems.
The latest economic news also helped the market as the number of Americans filing claims for unemployment benefits fell, providing further evidence that the US job market is slowly improving.
The Labor Department said initial claims for jobless benefits dropped by 11,000 to 448,000, the lowest level in four weeks. The news was slightly better than economists had expected.
To the figures, the Dow Jones Industrial Average closed 122 points higher at 11,167. The S&P500 Index rose 15 points at 1,207 and the NASDAQ is up 40 at 2,512.
European stock markets closed higher. London’s FTSE rose 31 points, Paris gained 54 points and Frankfurt added 61 points.
To our region now and Asian stocks were lower. Hong Kong’s Hang Seng fell 170 points, Tokyo’s Nikkei tumbled 288 points and China’s Shanghai Composite is down 32 points.
The Australian share market finished lower yesterday as first half profit from ANZ Banking Group didn’t beat expectations and held back the financial sector and continued debt worries in Europe affected resources stocks. The S&P/ASX 200 Index dropped 37 points to 4,786 and on the futures market the SPI200 is up 39 points. On to currencies: the Aussie Dollar was higher at 8:45AM was buying 93 US cents, 60.56 Pence Sterling, 87.49 Yen and 70.16 Euro cents.
In local economic news, the Reserve Bank of Australia publishes financial aggregates data for March. Also out for March, the Housing Industry Association releases its new home sales report.
To company news around this morning: Metcash (ASX:MTS) shares closed 0.97% lower yesterday to $4.08. Barely a month after snaring control of Mitre 10, Metcash (ASX:MTS) has put its stamp on the hardware chain by?appointing a new chief executive. Yesterday Metcash announced Mark Laidlaw as the new chief executive of Mitre 10 - taking over from Mark Burrowes. The move came as a surprise to the market because Mitre 10 and Metcash had previously indicated that Mr Burrowes would stay on in the role after leading the company during a period of transition. But Mitre 10 said the decision was made mutually with Mr Burrowes who may now be entitled to a multimillion dollar pay out. Mr Laidlaw joined Metcash in 2001, and over the past six years, has been the general manager of its Victorian IGA distribution business. Metcash is in the middle of a comprehensive review which is due to be completed on May 7. Metcash’s net profits have increased over the past two financial years to $202 million in 2009.
Shares in Australian Pharmaceutical Industries (ASX:API) closed steady yesterday at 58 cents. API says that pharmacists are adopting a ‘wait and see’ approach before deciding whether to drop its rival Sigma as their preferred wholesaler. Speaking yesterday API’s chief executive Stephen Roche said there were opportunities for Australian Pharmaceutical Industries to capitalise on Sigma’s situation - which is being forced to repay debt by selling assets and cutting generous credit terms to clients to customers. Mr Roche said he would need to consider the credit risks and strategic fit of any new customers and that he would offer them similar arrangements to existing clients. Yesterday the pharmaceuticals distributor and health and beauty retailer said it was on track to meeting its full-year guidance despite pressure on its retail business. The company posted a 54.5% rise in first half profit. Australian Pharmaceutical Industries 2009 net profit increased by about $3 million from the year before to $18 million.
To companies going ex-dividend on Monday - they are Alcoa, Anglo Pacific Group, Henderson Group, United Overseas Australia and Waterco.
To commodities: The price of gold fell $2.90 to US$1,168.40 an ounce for the May contract on Comex. Silver rose 44 cents to US$18.55 and copper is down 3.5 cents at US$3.33.
And finally the price of oil gained up $1.95 to US$85.17 a barrel for June light crude in New York.
