The SPI is pointing to a slightly firmer start for the Australian share market, having received positive offshore leads. Wall St continued to advance to multi-year highs, despite mixed earnings reports and some disappointing economic news.
US economic news: The Department of Commerce reported that first-quarter gross domestic product expanded at an annual rate of 1.8 per cent, failing to meet expectations. The Labor Department reported that weekly initial jobless claims totalled 429,000 last week, over the key 400,000 level for the third straight week, and also, coming in lower than expectations. However, the National Association of Realtors delivered a report that surpassed expectations, revealing that pending home sales rose 5.1 per cent in March.
To the figures: On Thursday, the Dow Jones Industrial Average advanced 72 points to close at 12,763, the S&P500 added 5 points to close at 1,360 and the NASDAQ lifted 3 points to close at 2,873.
European stocks closed higher: London’s FTSE up 2 points, Paris up 37 and Frankfurt was up 70.
Asian markets, stocks were mixed: Hong Kong’s Hang Seng was down 87, Tokyo Nikkei was up 158 and China’s Shanghai Composite was down 38.
The Australian share market pared gains on Thursday, to close barely changed: The S&P/ASX 200 Index closed flat at 4,873. On the futures market the SPI is 9 points higher.
Turning to currencies and the Australian Dollar at 7:20AM was buying $1.0929 US cents, 65.73 Pence Sterling, 89.1 Yen and 73.73 Euro cents.
Company news: Yesterday shares in Origin Energy (ASX:ORG) fell 1.42 per cent to close at $16.63. The soaring Australian dollar will support Australia’s gas industry by cutting the construction costs of giant export terminals, that is according to Origin Energy’s CEO Grant King. Over $100 billion is expected to be injected into Australia’s clean-burning fuel technology industry over the next decade by international energy companies, at the same time that Origin is looking to advance its $35 billion Australia Pacific Liquefied Natural Gas project. Mr King has told Dow Jones Newswires that, for an Australian dollar company with an Australian dollar balance sheet, the strength of the nation’s currency is very encouraging through the construction phase. In the six months to 31 December 2010 Origin Energy booked a net loss of $100 million.
On Thursday shares in Foster's Group Ltd (ASX:FGL) eased 0.35 per cent to close at $5.75. Foster’s shareholders are today expected to approve a proposed $11 billion demerger of the company's beer and wine divisions when they gather in Melbourne to vote. The scheme of arrangement under consideration requires majority shareholder support, but has been boosted with a unanimous recommendation from the Foster's board. If the split is approved Treasury Wine Estates would become its own listed entity and Foster’s would retain the beer, cider and spirits businesses, with speculation both would be attractive takeover targets for larger international players. In the first half of the 2011 financial year, Foster's Group recorded a net profit of $312 million.
Ex-dividends: No companies are going ex-dividend today. Among those coming up next week are Henderson Group, Bank of Queensland and Australian Pharmaceuticals Industries.
Commodities: Gold is up $14.10 to $US1,531 an ounce for the June contract on Comex, silver is up $1.56 to $47.52 for May and copper is up $0.02 at $4.24 a pound. Oil is up $0.10 at $112.86 a barrel for June light crude in New York.
