Following strong offshore leads, the Australian share market looks to extend yesterday’s gains. Wall St rallied on the back of positive economic data showing house prices increased for the first time in nine months.
US economic news
A leading gauge on the housing market, the S&P/Case Shiller 20-city index, showed house prices were up 0.7 per cent in April from the month before, snapping eight months of falls. However, prices are still 4 per cent lower from a year before. Also, the Conference Board’s survey on consumer confidence produced a read under expectations, coming in at 58.5 for June from a revised 61.7 the month before.
Figures
On Tuesday, the Dow Jones Industrial Average advanced 145 points to close at 12,189, the S&P500 added 17 points to close at 1,297 and the NASDAQ gained 41 points to close at 2,729.
European stocks closed higher: London’s FTSE up 45 points, Paris up 55 and Frankfurt was up 63 points.
To Asian markets and stocks were also higher: Hong Kong’s Hang Seng was up 20, Tokyo Nikkei was up 71 and China’s Shanghai Composite was up 0.97.
The Australian share market added 0.3 per cent on Tuesday: The S&P/ASX 200 Index rose 13 points to close at 4,474. While on the futures market the SPI is currently 52 points higher.
Currencies
The Australian Dollar at 7:30AM was buying $1.0548 US cents, 65.94 Pence Sterling, 85.55 Yen and 73.4 Euro cents.
Company news
Shares in Virgin Blue Holdings Ltd (ASX:VBA) fell 1.78 per cent on Tuesday to close at $0.275. Virgin Australia has appealed to Australia’s competition regulator to approve its recently announced partnership with Singapore Airlines. The application to the Australian Competition and Consumer Commission also said Virgin would now move to end its partnership with Malaysia Airlines as it focuses on its new alliance. In the first half of the 2011 financial year, Virgin Blue generated a net profit of $23.8 million.
Yesterday shares in Pacific Brands Ltd (ASX:PBG) lost 0.75 per cent to close at $0.66. A number of employees at retailer Pacific Brands have reportedly been made redundant, amid controversy the company has been struck with claims of alleged bullying in addition to facing a $9 million unlawful dismissal law suit. A Pacific Brands spokesperson has told Fairfax that the job losses are unrelated to the legal action. Pacific Brands booked an interim net loss of $166 million in last six months of 2010.
Ex-dividends
Among the companies going ex-dividend today are Australian Masters Corporate Bond Fund No1 with a fully franked dividend of $3.65. Among those coming up later this week are Graincorp.
Commodities
Gold is up $3.80 to $US1,500 an ounce for the August contract on Comex, silver is up $0.05 to $33.64 for July and copper is up $0.04 at $4.09 a pound. Oil is up $2.28 at $92.89 a barrel for August light crude in New York.
