The Australian share market looks set to rise in early trade, after US markets reversed two days of losses, climbing higher on economic growth estimates.
US economic news
First-quarter economic growth came in barely changed at 2.4 per cent, narrowly missing analysts' forecasts and sparking hopes that the US Federal Reserve will find little reason in the data to halt its stimulus program.
Figures
Wall Street ended in positive territory: The Dow Jones Industrial Average gained 22 points to close at 15,325, the S&P 500 added 6 points to close at 1,654 and the NASDAQ lifted by 24 points to close at 3,491.
European markets were also higher: London’s FTSE gained 30 points, Paris added 22 points and Frankfurt was up by 64 points.
But Asian markets had a horror session. The Nikkei 225 slumped 5.2 per cent, after Fast Retailing Co, which has a weighting of almost 10 per cent of the benchmark index, tumbled by the most since March 2011. The 11 percent plunge by Asia’s biggest clothing retailer accounted for 23 percent of the Nikkei’s net decline : Hong Kong’s Hang Seng shed 71 points, Tokyo’s Nikkei lost 737 and China’s Shanghai Composite was 6 points lower.
The Australian share market fell 0.9 per cent yesterday, hitting session lows under the 4,900 mark before rebounding slightly at the close. The S&P/ASX 200 index dropped 44 points to end the trading day at 4,931.
On the futures market the SPI is 19 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US96.61 cents, 63.44 Pence Sterling, 97.38 Yen and 74.06 Euro cents.
Company news
Elders Limited
(ASX:ELD) is in a trading halt ahead of the release of its first half results today. The company is expected to report a small, underlying loss for the half year to March 31. It comes after the ACCC gave the green light to a potential takeover by rival Ruralco earlier this week. Shares in Elders closed 15 per cent higher yesterday at 11.5 cents.
Tabcorp Holdings Limited
(ASX:TAH) is likely to negotiate a payment to the New South Wales government to maintain its retail betting monopoly, according to media reports. The payment is reportedly expected to be $50 million-plus, though representatives from the company and the state government are negotiating the terms of an agreement, as well as a fee to extend the monopoly. The current deal gives Tabcorp exclusive rights to TAB outlets and over-the-counter TAB operations in pubs and clubs. Shares in Tabcorp closed 2.87 per cent down yesterday at $3.38.
Ex dividend
Newhaven Hotels Limited
(ASX:NHH) will pay 2 cents per share fully franked
Redflex Holdings Limited
(ASX:RDF) will pay 2 cents per share fully franked
Commodities
Gold is up $20.20 to $US1,411.50 an ounce for the June contract on Comex. Silver is up $0.24 to $22.69 for July. Copper is up $0.02 at $3.32 a pound. Oil is up $0.48 at $US93.61 a barrel for July light crude in New York.
