There are strong offshore leads this morning after US stocks advanced for a second day, leaving the Australian share market looking set to open higher.
In US economic news, a report from the New York Federal Reserve says consumers are starting to slowly borrow again and banks are more willing to extend credit. The report also says total household delinquency rates have continued to improve for the fifth quarter in a row, as overdue balances fell 15 per cent from one year ago.
Looking to the figures the Dow Jones Industrial Average is 46 points higher, closing at 12,685, the S&P500 closed 6 points higher at 1,346 and the NASDAQ is up 16 points to close at 2,843.
European stocks closed lower on Monday; London’s FTSE down 34 points, Paris was down 51 and Frankfurt down 82.
Asian markets were mixed; Hong Kong’s Hang Seng was up 177, Tokyo Nikkei was down 65 and China’s Shanghai Composite was up 9.
The S&P/ASX 200 Index added 14 points to close at 4,757. While on the futures market the SPI is currently 3 points lower. The Australian Dollar at 7:30AM was buying $1.0801 US cents, 65.9 Pence Sterling, 86.73 Yen and 75.25 Euro cents.
In economic news, Treasurer Wayne Swan will hand down his fourth budget in Canberra tonight; and the Australian Bureau of Statistics will release trade in goods and services figures for March later today.
In company news, on Tuesday shares in Wesfarmers (ASX:WES) rose 1.45 per cent to close at $33.48. The company has sold $US650 million in five-year bonds, including a change-of-control provision designed to protect investors against event risk if the issuer is taken over in a leveraged buyout. The proceeds are understood to be used for general corporate purposes. In the first six months of the 2011 financial year, Wesfarmers booked a net profit of $1.2 billion.
Shares in the Bank of Queensland (ASX:BOQ) finished steady yesterday at $9.28. The Bank has vowed to slash home loan interest rates if the government adopts a key recommendation of a senate enquiry into the banking system, where the government would cut fees the small banks pay on money that was borrowed under a guarantee scheme introduced during the GFC. The bank’s chief said the proposal would level the playing field for regional banks. For the half year ending February 28, Bank of Queensland booked a $50.4 million profit.
There are three companies going ex-dividend today, among them we have Alcoa with an unfranked dividend of $0.02.38, Astivita Renewables with a fully franked dividend of $0.04, and Tamawood with a fully franked dividend of $0.08.
And to commodities, Gold is up $11.60 to $US1,503 an ounce for the June contract on Comex, silver is up $1.83 at $37.12 for July and copper is up $0.04 at $4.02 a pound. Oil is up $5.37 at $102.55 a barrel for June light crude in New York.
