Signals the US Federal Reserve will continue to stimulate the American economy look set to buoy the Australian share market this morning. While Italy’s election stalemate continued to unnerve investors and pushed European stocks down overnight, Wall Street was given a boost by comments from the Fed’s chairman Ben Bernanke and better than expected economic and company reports. At home, the earnings season continues with AGL Energy Limited
(ASX:AGK), UGL Limited
(ASX:UGL) and Westfield Group
(ASX:WDC) among the companies due to release results today.
US economic news
Investors were encouraged by indications America’s housing market is improving: S&P Case-Shiller reports America’s house prices in 20 major housing markets rose more than expected at the end of last year, up 0.9 per cent in December and 6.8 per cent year-on-year.
The Census Bureau reports new American homes sold soared to the highest level since mid-2008, jumping 15 per cent in January from the month before and almost 30 per cent from the year before.
Figures
Wall Street rose on Tuesday: The Dow Jones Industrial Average gained 116 points to close at 13,900, the S&P 500 gained 9 points to close at 1,497 and the NASDAQ gained 13 points to close at 3,130.
European markets retreated on Tuesday: London’s FTSE fell 85 points, Paris fell 99 points and Frankfurt fell 176 points.
Asian markets closed in the red on Tuesday: Hong Kong’s Hang Seng lost 300 points, Tokyo’s Nikkei lost 264 and China’s Shanghai Composite lost 32 points.
The Australian share market pulled back 1 per cent yesterday but managed to end above 5,000: The S&P/ASX 200 dropped 52 points on Tuesday, finishing at 5,004 . On the futures market the SPI is 29 points higher.
Currencies
The Australian Dollar at 8:15AM was buying $US1.023 cents, 67.67 Pence Sterling, 94.08 Yen and 78.38 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Construction work done data for December quarter
Reporting season results An ageing population has helped Ramsay Health Care Limited
(ASX:RHC) lift its first half net profit by 10 per cent to $138.4 million.
The private hospital owner and operator says it delivered a solid performance in all of its divisions across the world and believes it is well placed to meet healthcare demand from the ageing demographic. An interim fully franked dividend of 29 cents per share has been declared. Shares in Ramsay Health Care gained 1.01 per cent on Tuesday to close at $30.89.
Transfield Services Limited
(ASX:TSE) has flagged plans to divest assets after revealing a first half net loss of $247 million, dragged down by asset writedowns.
The construction and maintenance company’s chief says Transfield will now focus on cutting parts that are not aligned with its strategy and do not meet its margin, capital or growth criteria. Full year net profit guidance has been downgraded to between $85 million and $90 million and an interim unfranked dividend of 3 cents per share has been declared. Shares in Transfield Services dropped 5.94 per cent on Tuesday to close at $1.82.
Ex-dividends
Bega Cheese Limited
(ASX:BGA) with a 3.5 cent fully franked dividend
Decmil Group Limited
(ASX:DCG) with a 4 cent fully franked dividend
Emeco Holdings Limited
(ASX:EHL) with a 2.5 cent fully franked dividend
FSA Group Limited
(ASX:FSA) with a 1.75 cent fully franked dividend
Medical Developments International Limited
(ASX:MVP) with a 3 cent fully franked dividend
RCG Corporation Limited
(ASX:RCG) with a 1.75 cent fully franked dividend
Specialty Fashion Group Limited
(ASX:SFH) with a 2 cent fully franked dividend
Tatts Group Limited
(ASX:TTS) with an 8 cent fully franked dividend
Commodities
Gold is up $27.10 to $US1,614 an ounce for the April contract on Comex.
Silver is up $0.37 to $29.36 for March.
Copper is up $0.03 at $3.57 a pound.
Oil is $0.55 lower at $US92.56 a barrel for April light crude in New York.
