The Australian sharemarket is expected to open higher this morning thanks to positive offshore leads in the US and Europe. The SPI is pointing to a good start, despite the market closing flat yesterday. Nuclear fears in Japan continue to weigh on the market.
US economic news: In February the Consumer Price Index rose 0.5 per cent, the largest increase since June 2009. And initial claims for unemploymentbenefits fell 16,000 to 385,000 last week.
On Thursday The Dow Jones Industrial Average closed161 points higher at 11,775, S&P500 up 17 points to close 1,274 and the NASDAQ rose 19 points to close 2,636.
Yesterday European stocks closed higher:London’s FTSE up 98 points, Paris up 90 and Frankfurt up 143.
To Asian markets and stocks closed lower: Hong Kong’s Hang Seng down 416, Tokyo's Nikkei down 131 and China’s Shanghai Composite fell 34 points.
The Australian share market closed flat on Thursday: The S&P/ASX 200 Index fell 3 points to close at 4,555. On the futures market the SPI is currently up 18 points.
Turning to currencies and the Australian Dollar at 8:15AM was buying $US98.11 cents, 60.82 Pence Sterling, 77.41 Yen and 69.98 Euro cents.
Company news: On Thursday shares in Foster's Group Ltd (ASX:FGL) eased 0.37 per cent to close at $5.45. Foster’s has confirmed the demerger plans are on track, a shareholder vote is to be held on April 29. The beverages company has been considering a demerger since May last year. The chief executives of the demerged divisions could make $6.8 million in annual fixed-pay and short-term bonuses. As part of the demerger shareholders will receive one Treasury Wine Estates share for every three Foster’s shares. For the half year ended 31 December 2010, Foster's Group reported a net profit of $312 million.
Shares in Macarthur Coal Ltd (ASX:MCC) rose 2.01 per cent yesterday to close at $11.17. Macarthur Coal says the capital cost for its Middlemount project in Queensland has risen by $100 million. The project is now costing $500 million due to additional work needed to allow access to more coal reserves. Production is due to start in the first half of next year. The project is a joint venture with Gloucester Coal Ltd (ASX:GCL). In the half year to 31 December 2010, Macarthur Coal posted a net profit of $141 million.
To ex-dividends: There are two companies going ex-dividend today and they are: AGL Energy with a $0.29 unfranked dividend and Ideas International with a $0.04 dividend, 75 per cent franked. Coming up Monday we have Brisbane Broncos and Legend Corporation.
To commodities:Gold is up $8.10 to $US1,404 an ounce for the April contract on Comex, silver is down $0.21 to $34.26 for May and copper is up $0.15 at $4.34 a pound. Oil is up $3.44 at $101.42 a barrel for April light crude in New York.
