The Australian share market looks set for a steady start to the day despite mainly positive offshore leads. On Wall Street the Dow Jones Industrial Average and S&P500 continued to creep to all time highs while the Nasdaq dipped amid mixed economic reports and ahead of the US Federal Reserve’s verdict on monetary policy.
US economic news
House prices in America have risen by the biggest amount in six years but a read on consumer confidence has come in lower than expected. S&P/Case Shiller reported prices in 20 major US cities increased 5.5 per cent in November from the year before, marking the strongest yearly price rise since August 2006.
The Conference Board’s index of consumer attitudes dropped to the lowest level since November 2011 – down to 58.6 in January from 66.7 the month before.
Figures
Wall Street closed mixed on Tuesday: The Dow Jones Industrial Average added 72 points to close at 13,954 the S&P500 added 8 points to close at 1,508 and the Nasdaq lost 1 point to close at 3,154.
European markets ended higher on Tuesday: London’s FTSE added 45 points, Paris added 5 points and Frankfurt added 16 points.
Asian markets closed mixed on Tuesday: Hong Kong’s Hang Seng lost 17 points, Tokyo’s Nikkei added 42 and China’s Shanghai Composite added 12 points.
The Australian share market closed the first session of the week more than 1 per cent stronger on Tuesday: The S&P/ASX 200 Index surged 54 points to finish at 4,889. On the futures market the SPI is 2 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US1.047 cents, 66.45 Pence Sterling, 95.02 Yen and 77.64 Euro cents.
Company news Shares in Austal Limited
(ASX:ASB) rose yesterday as the defence contractor announced a teaming deal with Cubic Simulation Systems. Austal says the agreement is geared to facilitating collaboration on prospective Littoral Combat Ship crew training operations. Both Austal and Cubic Simulation Systems have the US Defence Department as a client. Shares in Austal rose 10.48 per cent on Tuesday, closing at $0.685.
Beach Energy Limited
(ASX:BPT) has affirmed its full year production targets despite posting a drop in quarterly output. The oil and gas company’s production fell 12 per cent and sales fell 21 per cent in the December quarter. Beach Energy has forecast stronger second half production and maintained its annual production guidance of 8.5 to 9 million barrels of oil equivalent. Shares in Beach Energy gained 1.45 per cent on Tuesday, closing at $1.40.
Ex-dividends tomorrow
Australian Masters Yield Fund Number 1 Limited
(ASX:AYD) with a fully franked dividend of $1.00
Australian Masters Yield Fund Number 2 Limited
(ASX:AYH) with a fully franked dividend of $1.15
Commodities
Gold is up $7.90 to $US1,660 an ounce for the February contract on Comex.
Silver is up $0.40 to $31.18 for March.
Copper is $0.03 higher at $3.69 a pound.
Oil is up $1.13 at US$97.57 a barrel for March light crude in New York.
