The Australian share market looks set to open lower after Wall Street ended in the red following the US Federal Reserve’s January meeting minutes. The latest Federal Open Market Committee (FOMC) minutes suggest America’s central bank will adjust its forward guidance on interest rates. US investors were unnerved amid concerns the Fed is considering hiking interest rates and weaker than expected housing construction data released on Wednesday.
Closer to home reporting season ramps up with AMP Limited
(ASX:AMP) having just posted a full year profit fall and Super Retail Group Limited
(ASX:SUL) posting a rise in its first half profit.
Also expected out today are earnings reports from majors including Fairfax Media Limited (ASX:FXJ), Mirvac Group (ASX:MGR) and Origin Energy Limited (ASX:ORG).
US economic news
Home construction in America dropped more than expected at the beginning of this year. The Commerce Department reports housing starts declined 16 per cent in January to post the largest one-month drop in seven years. An indication of future construction, building permits, declined 5.4 per cent in January against expectations for a 1.1 per cent fall.
Figures
Wall Street dropped on Wednesday: The Dow Jones Industrial Average fell 90 points to close at 16,041, the S&P 500 fell 12 points to close at 1,829 and the NASDAQ fell 35 points to close at 4,238.
European markets ended mixed on Wednesday: London's FTSE 100 Index ended flat following a lift in the nation’s unemployment rate, France's CAC 40 added 10 points and Germany's DAX ended slightly lower.
Asian markets also closed mixed yesterday: Japan’s Nikkei lost 77 points, Hong Kong’s Hang Seng added 77 points, and China’s Shanghai Composite added 23 points.
The Australian share market retreated from its peak yesterday to end just slightly higher after ABS data showed wages grew at their slowest pace in 16 years: The S&P/ASX 200 index gained 15.4 points to end Wednesday’s session at 5,408. On the futures market the SPI is 16 points lower.
Currencies
The Australian Dollar at 8:30AM was buying $US0.9008, 54.01 Pence Sterling, 92.16 Yen and 65.6 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Average Weekly Time Earnings for the six months to November
Company news
With reporting season in full swing Leighton Holdings Limited
(ASX:LEI) will be in the spotlight today when it releases its full year results. Only last week the construction giant confirmed its underlying net profit after tax is expected to reach between $520 to $600 million.
Separately, the company announced yesterday it has secured a $453 million contract to work on the Central Wanchai Bypass tunnel in Hong Kong. Shares in Leighton Holdings gained 1.86 per cent on Wednesday to close at $16.41 ahead of today’s announcement.
The Reject Shop Limited
(ASX:TRS) has affirmed its confidence in its strategy after reporting a 15.9 per cent fall in its first half net profit. The second hand goods retailer also confirmed its full-year net profit will come in slightly below the prior year which benefitted from an insurance recovery. Managing Director Chris Bryce says the company remains confident in its ability to leverage off the significant growth in stores and infrastructure and generate increased returns for its shareholders. A fully-franked interim dividend of 21.5 cents per share has been declared. Shares in The Reject Shop rose 0.94 per cent on Wednesday to close at $10.75 following the results announcement.
Ex-dividends
Korvest Limited
(ASX:KOV) paying a 26 cent fully franked dividend
My Net Fone Limited
(ASX:MNF) paying a 2 cent fully franked dividend
OZ Minerals Limited
(ASX:OZL) paying a 10 cent fully franked dividend
Pacific Energy Limited
(ASX:PEA) paying a 1 cent fully franked dividend
Royalco Resources Limited
(ASX:RCO) paying a 1 cent fully franked dividend
Commodities
Gold has fallen $4.00 to $US1,320.40 an ounce for the April contract on Comex.
Silver has eased $0.04 to $21.85 for March.
Copper has dipped $0.01 to $3.28 a pound.
Oil has added $0.88 to $US103.31 a barrel for March light crude in New York.
