The Australian share market looks set for a boost this morning after Wall Street gained overnight and the S&P 500 index lifted to a new record high on Monday. US investors were in a buying mood amid a series of earnings reports which have exceeded analyst expectations and merger activity.
Closer to home Australian earnings will also continue to trickle in with reports due from Atlas Iron Limited
(ASX:AGO), AWE Limited
(ASX:AWE), Charter Hall Group
(ASX:CHC), IOOF Holdings Limited
(ASX:IFL), Oil Search Limited
(ASX:OSH), QBE Insurance Group Limited
(ASX:QBE) and Ramsay Health Care Limited
(ASX:RHC). Elsewhere, the local currency is staying strong above $US0.90 and the price of gold and silver have risen to 16-week highs.
Global markets
Wall Street started the week stronger: The Dow Jones Industrial Average advanced 106 points to close at 16,209, the S&P 500 advanced 11 points to close at 1,848 and the NASDAQ advanced 30 points to close at 4,293.
European markets also rose on Monday on positive economic figures: London's FTSE 100 Index rose 28 points, France's CAC 40 rose 38 points and Germany's DAX rose 52 points.
Asian markets started the week in the red amid Chinese property bubble fears: Japan’s Nikkei lost 28 points, Hong Kong’s Hang Seng lost 180 points, and China’s Shanghai Composite lost 37 points.
The Australian share market continued to head higher and ended on positive territory yesterday: The S&P/ASX 200 Index added 1.5 points on Monday to finish at 5,440. On the futures market the SPI is 27 points stronger.
Currencies
The Australian dollar has rebounded from yesterday’s low and is back above $US0.90. At 8:10AM the Aussie was buying $US0.9034, 54.26 Pence Sterling, 92.56 Yen and 65.79 Euro cents.
Economic new due out today
Australian Bureau of Statistics: Producer price indexes for December and balance of payments data for the December quarter.
Company news
Shares in New Hope Corporation Limited
(ASX:NHC) fell yesterday after providing first half financial guidance and affirming its commitment to cost cutting. The coal miner expects its interim profit to reach between $21 million to $23 million, dropping from almost $69 million the same time a year earlier. New Hope says the anticipated result has been impacted by continuing weakness in thermal coal prices and a relatively high Australian dollar. Shares in New Hope Corporation fell 2.61 per cent yesterday to end at $3.36.
Shares in Aspen Group Limited
(ASX:APZ) gained yesterday after outlining progress made in its transition strategy, despite widening its first half loss to $70.2 million. The real estate management company says the result was impacted by impairment charges as it progresses the transition of becoming a focused accommodation provider. Aspen says following the transition the company will be a much simpler and more transparent and focussed business positioned in the “value-for-money” accommodation industry. Shares in Aspen Group gained 6.36 per cent yesterday to end at $1.25.
Ex-dividends
Acrux Limited
(ASX:ACR) paying a 12 cent unfranked dividend
Amcor Limited
(ASX:AMC) paying a 19.5 cent unfranked dividend
Bega Cheese Limited
(ASX:BGA) paying a 4 cent fully franked dividend
Challenger Limited
(ASX:CGF) paying a 12.5 cent unfranked dividend
CMI Limited
(ASX:CMI) paying a 3 cent fully franked dividend
Fleetwood Corporation
(ASX:FWD) paying a 2 cent fully franked dividend
Magellan Financial Group Limited (ASX: MFG) paying a 16.5 cent fully franked dividend
Macquarie Radio
(ASX:MRN) paying a 5 cent fully franked dividend
Orora Limited
(ASX:ORA) paying a 3 cent unfranked dividend
Origin Energy
(ASX:ORG) paying a 25 cent unfranked dividend
Platinum Asset Management
(ASX:PTM) paying a 14 cent fully franked dividend
Super Retail Group Limited
(ASX:SUL) paying a 18.5 cent fully franked dividend
Commodities
Gold has jumped $14.40 to $US1,338 an ounce for the April contract on Comex.
Silver has gained $0.27 to $22.05 for March.
Copper has dipped $0.02 to $3.27 a pound.
Oil has added $0.62 to $US102.82 a barrel for April light crude in New York.
