The Australian share market is set to gain after Wall Street stocks struck another record overnight. The Dow and S&P 500 soared to new heights, buoyed by strength in the health care sector following new US government incentives.
US economic news
The Census Bureau reported factory orders rose 3 per cent in February, coming in slightly ahead of expectations.
Figures
Wall Street rose on Tuesday: The Dow Jones Industrial Average gained 89 points to close at 14,662, the S&P 500 gained 8 points to close at 1,570 and the NASDAQ gained 16 points to close at 3,255.
European markets also gained on Tuesday: London’s FTSE added 79 points, Paris added 74 points and Frankfurt added 149 points.
Asian markets finished mixed on Tuesday: Hong Kong’s Hang Seng added 68 points, Tokyo’s Nikkei lost 132 and China’s Shanghai Composite lost 7 points.
The Australian share market started the second quarter of the year 0.4 per cent higher: The S&P/ASX 200 Index finished the first session of the week 19 points higher at 4,986. On the futures market the SPI is 12 points higher.
Currencies
The Australian Dollar at 7:30AM was buying $US1.044 cents, 69.23 Pence Sterling, 97.59 Yen and 81.57 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International trade in goods and services data for February
Housing Industry Association: New home sales for February
Company news Shares in Lynas Corporation Limited
(ASX:LYC) slumped to a three year low yesterday amid concerns for the rare earths pricing outlook and permit uncertainty ahead of Malaysian elections. The rare earths developer’s share price fall came after China’s largest rare earths producer, Baotou Steel, booked a 57 per cent profit fall, lowered its revenue guidance and failed to forecast any signs of recovery in the industry. Shares in Lynas Corporation slumped 9.82 per cent on Tuesday to end the session at $0.505.
BlueScope Steel Limited
(ASX:BSL) has bought back $US110.1 million of outstanding private placement notes, advising the purchase will be made using existing syndicated debt. The news comes less than one week after the steel producer announced the official start up of its $US1.4 billion Coated Products Joint Venture with the world’s second biggest steel maker, Nippon Steel and Sumitomo Metal Corporation. Shares in BlueScope Steel slipped 0.2 per cent on Tuesday to finish at $5.00.
Ex-dividends
Austock Group Limited
(ASX:ACK) with a 1 cent unfranked dividend
Austbrokers Holdings Limited
(ASX:AUB) with an 11 cent fully franked dividend
ITL Limited
(ASX:ITD) with a 0.5 cent fully franked dividend
Commodities
Gold is down $25.00 to $US1,576 an ounce for the June contract on Comex.
Silver is down $0.70 to $27.25 for May.
Copper is up $0.004 at $3.38 a pound.
Oil is up $0.12 at $US97.19 a barrel for May light crude in New York.
