A positive start is expected for the Australian share market today following solid gains on Wall St, with US investors buoyed by encouraging labour market data.
US economic news: Consulting firm Challenger, Gray & Christmas showed the number of jobs cut dropped 18 per cent in March from the month before. While, year on year, jobs cut dropped 39 per cent from March 2010. Also, payroll processor ADP reported that private sector employment increased by 201,000 in March.
On Wednesday, the Dow Jones Industrial Average advanced 72 points to close at 12,351, S&P500 gained 9 points to close at 1,328 and the NASDAQ rose 20 points to close at 2,777.
European stocks ended higher: London’s FTSE up 16 points, Paris up 37 and Frankfurt up 123.
To Asian markets and stocks closed mixed: Hong Kong’s Hang Seng was up 391, Tokyo’s Nikkei was up 250 and China’s Shanghai Composite was down 2 points.
The Australian share market closed higher on Wednesday: The S&P/ASX 200 Index rose 66 points to close at 4,822. While on the futures market the SPI is currently 23 points higher.
Turning to currencies and the Australian Dollar at 8:40AM was buying $US1.0325 cents, 64.22 Pence Sterling, 85.59 Yen and 73.08 Euro cents.
Economic news: Due out today, the Australian Bureau of Statistics retail trade data and building approvals data, both for February.
Company news: On Wednesday shares in Sundance Resources Ltd (ASX:SDL) fell 2.08 per cent to close at $0.47. The head of Sundance's unit, Congo Iron, has told Reuters that the iron ore explorer will pour $600 million into developing its Nabemba mine in the Republic of Congo. According to the report Nabemba is due to start production in 2014 and transform Congo into one of the biggest iron ore exporters in the world. Sundance Resources hold the majority 85 per cent stake in Nabemba, with the remaining interest held by Congolese investors and the state. In 2010 financial year Sundance Resources booked a net loss of $9.2 million.
Yesterday shares in Myer Holdings Ltd (ASX:MYR) lifted 0.95 per cent to close at $3.19. Myer’s flagship Melbourne store could add an extra $300 million in sales in the 2012 financial year, when it officially re-opens this Friday. CEO Bernie Brookes says he expects the refurbished Bourke Street store to have one of the highest sales per square meter of any department store in Australia, and potentially the world. Earlier this month Myer posted a 3.5 per cent fall in total first half sales and warned that full year net profit after tax to could fall by as much as 5 per cent. In the first half of its 2011 financial year Myer’s net profit dipped 5 per cent to $106.7 million.
Ex-dividends: Four companies are going ex-dividend today and among them we have Acrux with a $0.60 cent unfranked dividend, Carsales.com with a $0.09 fully franked dividend, National Can Industries with a $0.01 cent fully franked dividend. Coming up tomorrow are Customers and Gowing Brothers.
Commodities: Gold is up $7.60 to $US1,423 an ounce for the April contract on Comex, silver is up $0.52 to $37.51 for May and copper is down $0.07 at $4.27 a pound. Oil is down $0.52 at $104.27 a barrel for April light crude in New York.
