The Australian market looks set to extend yesterday’s gains after Wall Street rallied. US stocks shrugged of disappointing economic data and advanced on hopes the Federal Reserve will announce new stimulus measures when it meets later this week. At home, a swarm of full year results are due out from companies including Qantas Airways Limited (ASX:QAN), BHP Billiton Limited (ASX:BHP) and WorleyParsons Limited (ASX:WOR).
US economic news
The Census Bureau has reported that new homes sales fell for the third straight month in July. Last month new homes sales eased 0.7 per cent to an annual rate of 298,000, coming in under expectations. In July the median price of a new home in the US was $US222,000.
Figures
On Tuesday, the Dow Jones Industrial Average gained 322 points to close at 11,177, the S&P500 added 39 points to close at 1,162 and the NASDAQ lifted 101 points to close at 2,446.
European stocks closed higher: London’s FTSE up 34 points, Paris up 33 and Frankfurt was up 59 points.
To Asian markets,stocks climbed: Hong Kong’s Hang Seng rose 389, Tokyo Nikkei was up 105 and China’s Shanghai Composite was up 38 points.
The Australian share market surged 2.23 per cent on Tuesday: The S&P/ASX 200 Index advanced 91 points to close at 4,173. On the futures market the SPI is 60 points stronger.
Currencies
The Australian Dollar at 7:35AM was buying $1.0531 US cents, 63.87 Pence Sterling, 80.8 Yen and 72.96 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics: Construction work done for June quarter.
Company news
Yesterday shares in Sedgman Limited (ASX:SDM) rose 4.59 per cent, closing at $1.93. That was after the resource sector services company announced it had been awarded a $123 million contract from BHP Billiton. The award is the second and larger contract Sedgman has won for BHP Billiton Mitsubishi Alliance’s Daunia Mine in Queensland’s Bowen Basin. Sedgman will provide design and procurement services and will construct and commission the entire coal handling and preparation plant at the site. Last week Sedgman reported a net profit of $26 million for the full 2011 financial year.
On Tuesday shares in ANZ Banking Group (ASX:ANZ) gained 2.69 per cent, closing at $19.82, that was after the bank announced it will raise $750 million in convertible preference shares. The move is geared towards strengthening its capital position ahead of the implementation of new global bank rules. ANZ says the offer gives the bank an opportunity to test market demand for a new style hybrid capital issue. In the first half of its 2011 financial year ANZ posted a net profit of $2.7 billion.
Ex-dividends
Four companies are going ex-dividend today: Adelaide Brighton, Domino’s Pizza Enterprises, GUD Holdings, Santos. Among those coming up tomorrow: Hire Intelligence International, Logicamms, Mincor Resources.
Commodities
Gold is down $30.60 to $US1,861 an ounce for the December contract on Comex. Silver is down $1.03 cents to $42.29 for September. Copper is up 4 cents at $4.00 a pound. Oil is up $1.02 at $85.44 a barrel for October light crude in New York.
