The Australian share market looks to be gearing up for a positive start to the day after global markets closed higher. US investors overlooked a disappointing report on durable goods, instead focusing on an upbeat read on consumer confidence.
US economic news
Durable goods orders dropped more than expected at the beginning of this year. According to the Commerce Department new orders for durable goods pulled back 4 per cent in January, the largest monthly drop in three years. The drop came in worse than expected and following three months of gains.
US consumer sentiment rose more than expected this month. According to the Conference Board consumer sentiment hit a 1-year high, rising to 70.8 in February 2012 from 61.5 the month before.
Figures
Wall Street closed higher on Tuesday: The Dow Jones Industrial Average added 24 points to close at 13,005, the S&P500 added 21 points to close at 2,987 and the Nasdaq added 5 points to close at 1,372.
European markets also finished stronger yesterday: London’s FTSE added 12 points, Paris added 13 points and Frankfurt added 38 points.
Asian markets rose yesterday: Hong Kong’s Hang Seng added 351 points, Tokyo Nikkei added 89 and China’s Shanghai Composite added 5 points.
The Australian share market traded in a narrow range and closed flat on Tuesday: The S&P/ASX 200 Index lost 5 points to finish at 4,263. On the futures market the SPI is now 11 points higher.
Currencies
The Australian Dollar at 8:30AM was buying $US1.078 cents, 67.78 Pence Sterling, 86.74 Yen and 80.04 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Retail trade data for January 2012 and construction work done for December quarter 2011
Housing Industry Association: New home sales for January 2012
Company news
Shares in AWE Limited (ASX:AWE) rose 2.3 per cent yesterday, closing at $1.78. Oil and gas explorer AWE has rebounded to a half year net profit of almost $30 million on the back of higher prices for its products and lower operating costs. In the last half of 2011 the company’s revenue gained 17 per cent, despite a drop in production. AWE’s profit was also aided by a $12.2 million post-tax gain from its stake sale in Buru Energy Limited (ASX:BRU).
Shares in Gloucester Coal Limited (ASX:GCL) dipped 0.12 per cent yesterday, closing $8.14. Gloucester Coal has swung from a profit to a first half net loss of $37 million for the last six months of 2011, weighed down by weaker demand for its products. The coal company believes the results reflect a difficult and challenging period which was one of transition. Gloucester says significant achievements in the half year include the acquisition and integration of the Donaldson and Monash businesses and the establishment of mining operations at Middlemount.
Ex-dividends
Twelve companies are going ex-dividend today:
Echo Entertainment Group
Finbar International
FSA Group
Gerard Lighting
GR Engineering Services
Infomedia
Kingsgate Consolidated
REA Group
Rio Tinto
John Shearer
Spark Infrastructure Group
Tatts Group
Commodities
Gold is up $13.50 to $US1,778 an ounce for the April contract on Comex.
Silver is down $1.62 to $37.14 for March.
Copper is up $0.03 at $3.90 a pound.
Oil is down $2.01 at $106.55 a barrel for March light crude in New York.
