The Australian share market looks poised to advance following strong offshore leads. On Wall Street US stocks rose to multi-year highs on the back of upbeat comments from America’s central bank and positive economic data.
US economic news
The US Federal Reserve has decided to hold its key interest rate near zero and maintain its Operation Twist stimulus program.
America’s retail sales recorded the biggest gain in five months. According to the Commerce Department retail sales rose more than expected, up 1.1 per cent in February after adding 0.6 per cent the month before.
Figures
Wall Street rose on Tuesday: The Dow Jones Industrial Average added 218 points to close at 13,178, the S&P500 added 25 points to close at 1,396 and the Nasdaq added 56 points to close at 3,040.
European markets also gained yesterday: London’s FTSE added 63 points, Paris added 60 points and Frankfurt added 95 points.
Asian markets also finished stronger: Hong Kong’s Hang Seng added 206 points, Tokyo’s Nikkei added 9 and China’s Shanghai Composite added 21 points.
The Australian share market rose throughout the day to end 1.2 per cent higher on Tuesday: The S&P/ASX 200 Index advanced 51 to finish at 4,248. On the futures market the SPI is currently 39 points stronger.
Currencies
The Australian Dollar at 8:30AM was buying $US1.0544 cents, 67.15 Pence Sterling, 87.45 Yen and 80.63 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Dwelling unit starts for the December quarter 2011
Westpac and the Melbourne Institute: Survey of consumer sentiment for March 2012
Company news
Shares in Lynas Corporation Limited (ASX:LYC) gained 3.85 per cent on Tuesday closing at $1.22, that was after the rare earths developer confirmed its Malaysia rare earths refinery is 96 per cent complete. Lynas also affirmed it is on track for first feed to kiln and first production the second quarter this year. In the 2011 financial year Lynas Corporation booked a net loss of $59 million.
Shares in Singapore Telecommunications Limited (ASX:SGT) lifted 1.29 per cent yesterday to finish at $2.35. Singtel’s Australian arm Optus has headed back to the court room to defend its right to broadcast National Rugby League (NRL) and Australian Football League (AFL) games on mobiles and online. Optus won the right to broadcast in February but the NRL, AFL and Telstra Corporation Limited's (ASX:TLS), who holds broadcasting rights, want to overturn the decision which also allows Optus to broadcast. SingTel reported a net profit of $1.4 billion in the first half of its 2012 financial year.
Ex-dividends
Five companies are going ex-dividend today:
Careers MultiList Limited
CSL Limited
Melbourne IT Limited
Prime Financial Group Limited
Royal Wolf Holdings Limited
Commodities
Gold is down $5.60 to $US1,694 an ounce for the April contract on Comex.
Silver is up $0.17 to $33.58 for March.
Copper is up $0.065 at $3.90 a pound.
Oil is up $0.37 at $106.71 a barrel for March light crude in New York.
