The Australian market looks to be gearing up for a positive start, after Wall St closed higher on Wednesday. US investors looked beyond global jitters and a disappointing report on new home sales to stage a late-day advance.
In US economic news: The Census Bureau’s monthly report showed new home sales dropped 16.9 per cent in February, representing a record low. Sales dropped to an annual rate of 250,000, 28 per cent down from February 2010.
Turning to the figures from the US: The Dow Jones Industrial Average rose 67 points to close at 12,086, S&P500 gained 4 points to close at 1,298 and the NASDAQ added 14 points to close at 2,698.
European stocks ended higher: London’s FTSE up 33 points, Paris up 21 and Frankfurt up 23.
Asian markets, stocks closed mixed: Hong Kong’s Hang Seng was down 33, Tokyo’s Nikkei was down 159 and China’s Shanghai Composite was up 29 points.
The Australian share market closed higher on Wednesday: The S&P/ASX 200 ended the day 9 points up at 4,652. On the futures market the SPI is currently 19 points higher.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US1.0129 cents, 62.38 Pence Sterling, 81.98 Yen and 71.91 Euro cents.
Economic news: The Reserve Bank of Australia is today due to release its Financial Stability Review.
Company news: On Wednesday shares in Fortescue Metals Group Ltd (ASX:FMG) dipped 0.17 per cent to close at $5.87. Fortescue’s founder and CEO Andrew Forrest has eclipsed News Corporation’s (ASX:NWS) Rupert Murdoch to score the top spot in BRW's Executive Rich list. Mr Forrest increased his wealth to $6.2 billion, on the back of stronger iron ore prices. Indeed the annual rich list was dominated by the mining industry, with mining executives lodging a 29 per cent increase in wealth, in contrast to the average 3 per cent rise for those outside of the industry. BRW Rich list editor, Andrew Heathcote, says the results show anyone in resources did well while everyone else was flat or down on last year, evidence of the two-speed economy. In the six months to 31 December 2010 Fortescue Metals booked a net profit of $309 million.
Yesterday shares in Linc Energy Ltd (ASX:LNC) closed steady at $2.85. Linc Energy has announced that it has finalised its $20 million purchase of three producing oil fields in the United States. The underground coal gasification company says it will receive all oil sales revenue and operating expenses from the beginning of March this year. Linc advises that the purchase represents its first strategic step to acquiring producing petroleum assets which provide immediate revenue and, an entry point into the enhanced oil recovery market. In the six months to 31 December 2010 Linc Energy posted a net profit of $328 million.
Ex-dividends: Five companies are going ex-dividend today and they are CPT Global with a $0.02 fully franked dividend, IMF with a $0.10 fully franked dividend, OrotonGroup with a $0.22 fully franked dividend, The Reject Shop with a $0.23 fully franked dividend and Webjet with a $0.05 fully franked dividend. Among those coming up tomorrow are Aurora Sandringham Australian Equity Income Trust and Australian Education Trust.
Commodities: Gold is up $10.40 to $US1,438 an ounce for the April contract on Comex, silver is up $0.93 to $37.20 for May and copper is up $0.12 at $4.43 a pound. Oil is up $0.78 at $105.75 a barrel for May light crude in New York.
