The Australian share market looks set to bounce on the back of a testimony made by new US Federal Reserve chair Janet Yellen yesterday. Wall Street rose in response to Yellen’s pledge to maintain continuity as she leads America’s central bank, affirming the Fed’s confidence in US economic recovery.
The Australian dollar got a boost from the news and jumped above $US0.90 for the first time since mid-January. The dollar was also aided by a strong read on business conditions yesterday ahead of a read on consumer confidence today.
Elsewhere local earnings will be in focus with a series of Australian companies revealing results today including Commonwealth Bank of Australia
(ASX:CBA), Boral Limited
(ASX:BLD), CSL Limited
(ASX:CSL), OZ Minerals Limited
(ASX:OZL), Stockland Limited
(ASX:SGP), Goodman Fielder Limited
(ASX:GFF) and Domino's Pizza Enterprises Limited
(ASX:DMP).
Figures
Wall Street’s major indexes each gained more than 1 per cent following Yellen’s testimony yesterday: The Dow Jones Industrial Average jumped 193 points to close at 15,995, the S&P 500 jumped 20 points to close at 1,820 and the NASDAQ jumped 43 points to close at 4,191.
European markets climbed higher on Tuesday: London’s FTSE gained 81 points, Paris gained 46 points and Frankfurt gained 189 points.
Asian markets moved up yesterday: Tokyo’s Nikkei lifted 256 points, Hong Kong’s Hang Seng lifted 384 points, and China’s Shanghai Composite lifted 18 points.
The Australian share market elevated 0.6 per cent yesterday to end at the session’s high: The S&P/ASX 200 index gained 32 points to close Tuesday’s session at 5,255. On the futures market the SPI is 36 points stronger.
Currencies
The Australian Dollar has soared over $US0.90 to hit a six week high. At 8:15AM the Aussie dollar was buying $US0.904 cents, 54.97 Pence Sterling, 92.78 Yen and 66.3 Euro cents.
Economic news
Australian Bureau of Statistics: Overseas arrivals and departure for the December quarter
Westpac Banking Corporation
(ASX:WBC) and the Melbourne Institute: Survey of Consumer Sentiment
Company news
With reporting season in full swing Commonwealth Bank of Australia
(ASX:CBA) will be in focus when it releases its first half results today.
Analysts have forecast the bank will post an interim profit of $4.1 billion, growing from $3.7 billion in the prior corresponding period. The Big Four Banks last year generated collective profits of about $27 billion. Ahead of today’s announcement, shares in Commonwealth Bank of Australia rose 1.43 per cent yesterday to close at $75.92.
Law firm Slater & Gordon Limited
(ASX:SGH) is also due to release its first half results today.
The stock was one of last year’s best performers with a gain of almost 130 per cent over 2013. Executive Director and Head of Australia Ken Fowlie told FNN last month 2014 will be a year of consolidation after the company's recent expansion in to the UK market. Ahead of today’s announcement, shares in Slater & Gordon lost 2.77 per cent yesterday to close at $4.21.
Ex-dividends
Downer EDI Limited
(ASX:DOW) paying an 11 cent, 70 per cent franked dividend
Titan Energy Services Limited
(ASX:TTN) paying a 3.5 cent fully franked dividend
Commodities
Gold jumped $15.10 overnight to $US1,289.80 an ounce for the April contract on Comex.
Silver has risen $0.04 to $20.15 for March.
Copper has eased $0.01 to $3.22 a pound.
Oil has lost $0.12 at $US99.94 a barrel for March light crude in New York.
