The Australian share market looks to rise after Crimeans took to the polls and global markets responded well to Crimea’s decision to declare independence from Ukraine in favour for joining Russia.
Wall Street also gained on the back of encouraging economic data and ahead of a policy meeting on Tuesday, despite US President Barack Obama’s warnings over Russia’s armed forces in Ukraine.
Closer to home Australia’s own central bank will be in focus with the Reserve Bank of Australia’s (RBA) latest meeting minutes due for release and elsewhere in the world Chinese house price data is expected.
As investors moved back into equities overnight the price of commodities has weakened with gold, oil and iron ore posting falls while the local currency has strengthened and is edging closer to $US0.91.
US economic news
American factory production gained by the largest amount in six months in February. The US Federal Reserve reports factory output rose 0.8 per cent last month following a decline of 0.9 per cent in January and against expectations for a 0.2 per cent gain.
Global markets
Wall Street started the week stronger: The Dow Jones Industrial Average gained 182 points to close at 16,247, the S&P 500 gained 18 points to close at 1,859 and the NASDAQ gained 35 points to close at 4,280.
European markets rose on Monday following a three-week decline: London's FTSE 100 Index rose 40 points, France's CAC 40 rose 56 points and Germany's DAX rose 124 points.
Asian markets started the week mixed as Crimea’s voting results trickled through: Japan’s Nikkei lost 50 points, Hong Kong’s Hang Seng lost 66 points, and China’s Shanghai Composite added 19 points.
After its largest weekly drop this year the Australian share market continued to fall into the new week: The S&P/ASX 200 Index lost 12 points on Monday to finish at 5,318. On the futures market the SPI is 23 points stronger.
Currencies
The Australian dollar at 7:30am was buying $US0.9091, 54.66 Pence Sterling, 92.46 Yen and 65.29 Euro cents.
Economic news due out today
Australian Bureau of Statistics: International merchandise imports data
Reserve Bank of Australia: Monthly board meeting minutes
Company news
Lend Lease Group
(ASX:LLC) has won a $580 million contract with New South Wales Road and Maritime Services. Under the agreement announced after the market closed Lend Lease says it will design and construct 23 kilometres of upgrade works to the Pacific Highway. Earlier in the day the company revealed it has been appointed the preferred tenderer to design and construct the $3 billion NorthConnex Motorway in Sydney in partnership with a French construction company. Shares in Lend Lease Group rose 0.88 per cent on Monday to close at $11.42.
Cardno Limited
(ASX:CDD) has made its largest ever acquisition and completed a $50 million equity raising. The infrastructure and environment services consultancy has bought the PPI Group of companies for $US145 million. Cardno’s CEO Michael Renshaw says the acquisition forms part of the company’s strategy to expand in attractive growth markets such as energy. PPI Group is expected to help strengthen Cardno’s ability to service the oil and gas sector in the US and key emerging markets. Shares in Cardno fell 2.95 per cent on Monday to close at $6.24.
Ex-dividends today
Landmark White Limited
(ASX:LMW) paying a 1.25 cent fully franked dividend
McPherson's Limited
(ASX:MCP) paying a 6 cent fully franked dividend
MACA Limited
(ASX:MLD) paying a 30 cent fully franked dividend
WAM Capital Limited
(ASX:WAM) paying a 6.5 cent fully franked dividend
Ex-dividends tomorrow
Altium Limited
(ASX:ALU) paying a 4 cent unfranked dividend
Arowana Internat Limited
(ASX:AWN) paying a 2.4 cent unfranked dividend
Sfg Australia Limited
(ASX:SFW) paying a 1.4 cent fully franked dividend
Commodities
As tensions calmed down in Crimea the price of gold has fallen $6.10 to $US1,372.90 an ounce for the April contract on Comex.
Silver has eased $0.13 to $21.28 for May.
Copper is flat at $2.95 a pound.
Oil has dropped $0.81 to $US98.08 a barrel for April light crude in New York.
