The Australian share market looks set to start the first day of the month lower after rising 0.85 per cent in February and gaining 6 per cent from the start of the year. Overnight the European Central Bank handed out about $664 billion in loans. Though the news lifted Wall Street at first US stocks closed lower after the Federal Reserve’s Chairman Ben Bernanke failed to signal more monetary support for the US economy.
Economic news
The European Central Bank has offered €529.5 billion in cheap three-year loans to 800 lenders as part of its second Long-Term Refinancing Operation to take the pressure of the European debt crisis. The strategy is geared towards allowing banks to borrow money with interest rates as low as 1 per cent.
US economic news
America’s economy grew more than expected at the end of last year. According to the Commerce Department US gross domestic product (GDP) grew at an annual rate of 3 per cent in the last three months of 2011, increasing from the initial predictions of 2.8 per cent.
Figures
Wall Street closed lower on Wednesday: The Dow Jones Industrial Average lost 54 points to close at 12,952, the S&P500 lost 7 points to close at 1,366 and the Nasdaq lost 20 points to close at 2,967.
European markets also finished lower: London’s FTSE lost 56 points, Paris lost 2 points and Frankfurt lost 32 points.
Asian markets finished mixed yesterday: Hong Kong’s Hang Seng added 111 points, Tokyo Nikkei added almost 1 point and China’s Shanghai Composite lost 23 points.
The Australian share market rose throughout the day to end 0.8 per cent higher on Wednesday: The S&P/ASX 200 Index gained 36 points to finish at 4,299. On the futures market the SPI is now 24 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0736 cents, 67.46 Pence Sterling, 87.18 Yen and 80.57 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Building approvals for January 2012
Australian Industry Group and Pricewaterhouse Coopers: Performance of manufacturing index for February 2012
Reserve Bank of Australia: Index of commodity prices for February 2012
Company news
Shares in Crown Limited (ASX:CWN) rose 1.2 per cent yesterday, closing at $8.40. Confusion has surfaced over Crown’s interests in Echo Entertainment Group Limited (ASX:EGP). Crown stated yesterday it was not a substantial shareholder in Echo despite last week stating it had “an interest” in 10 per cent of Echo. Questions have now been raised if Crown has been misleading. In the first half of the 2012 financial year Crown’s net profit gained 80 per cent to $274 million.
Shares in Leighton Holdings Limited (ASX:LEI) fell 0.7 per cent yesterday, closing at $25.55. Officials from the Iraqi Oil Ministry anti-corruption unit have reportedly told the Australian Financial Review that it is “more than likely” a Leighton subsidiary paid brides to secure contract wins. Leighton reported a possible breach of its code of ethics to the Australian Federal Police last month, relating to payments that may have been made from its subsidiary Leighton Offshore. The AFR says no charges have yet been filed against Leighton but that the company faces the threat of being thrown out of Iraq if convicted. In the first half of the 2012 financial year, Leighton Holdings posted a net profit of $345 million.
Ex-dividends
Eleven companies are going ex-dividend today:
AGL Energy
Beach Energy
Carlton Investments
Fairfax Media
Hansen Technologies
Insurance Australia Group
Logicamms
NRW Holdings
Pro Medicus
Servcorp
Sonic Healthcare
Commodities
Gold is down $77.10 to $US1,711 an ounce for the April contract on Comex.
Silver is down $2.55 to $34.58 for March.
Copper is down $0.04 at $3.83 a pound.
Oil is up $0.52 at $107 a barrel for March light crude in New York.
