The Australian share market looks set to start today’s session higher, following positive leads from Europe and Wall St. In the US investors overlooked China’s latest interest rate rise, as the blue chips rose with McDonald’s stronger than expected sales report. Gains in the consumer sector lifted stocks, with the Dow clocking up its seventh consecutive advance to almost a 32-month high.
Economic news: The People's Bank of China said it would lift the borrowing and lending rates by 25 basis points, representing the country’s third hike in four months as it moves to curb inflation.
On Tuesday, the Dow Jones Industrial Average, closed 72 points higher to 12,233, S&P500 rose 6 points to close 1,325 and the NASDAQ added 13 points to close 2,797.
European stocks were higher: London’s FTSE up 40 points, Paris up 17 and Frankfurt up 40.
To Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 69 points, Tokyo was up 44 points and China’s Shanghai Composite was closed.
The Australian share market finished higher on Tuesday. The S&P/ASX 200 Index closed 22 points stronger to 4,890 and on the futures market the SPI is up 14 points. Turning to currencies and the Australian Dollar at 8:10AM was buying $1.015 US cents, 63.16 Pence Sterling, 83.58 Yen and 74.45 Euro cents.
In economic news: Due out today the Westpac/Melbourne Institute survey of consumer sentiment.
Company news: On Tuesday shares in Foster's Group Ltd (ASX:FGL) dipped 0.86 per cent to close at $5.74. Reuters has reported that Japan’s Asahi Breweries has no interest in buying a part of Australian beverages company Foster's Group. Foster's is planning to create separate stock exchange listings for its wine and beer businesses before the end of its financial year, and companies such as SABMiller and Asahi have been tipped as potential suitors. According to Reuters Asahi has rejected the prospect, telling the media that, “The price is expensive and recently (Australia's) market is looking tough”. Fosters reported a net loss of $463 million in the year to 30 June 2010.
Yesterday shares in Austal Ltd (ASX:ASB) rose 1.39 per cent to close at $2.92. Austal has secured an $8 million contract to deliver a passenger ferry to New Caledonia’s Mary D Enterprises. The shipbuilding company says that the 35 meter high speed vessel will be built by the company’s Western Australian workforce and is scheduled for delivery in November this year. At the end of last year the US Navy awarded Austal a $US432 million contract to deliver 10 Littoral Combat Ships. In the 2010 financial year Austal boosted its net profit to $37.13 million.
To commodities: Gold is up $15.90 to $US1,364 an ounce for the April contract on Comex, silver is up $0.93 to $30.27 for March and copper is steady $4.57 a pound. Oil is down $0.54 at $86.94 a barrel for March light crude in New York.
