The Australian share market and dollar are poised for a positive session ahead of the US Federal Reserve’s two day policy meeting amid expectations for a further cut to stimulus.
Local investors are set to get a boost from gains on global markets after concerns subsided over Crimea’s vote of independence from Ukraine in favour of Russia.
As Russia’s President Vladimir Putin sought to calm nerves in an address to the nation’s parliament Wall Street was also encouraged by well received US economic data.
US economic news
The US Commerce Department reports the construction of new homes dropped 0.2 per cent last month while an indication of future construction, building permits, gained 7.7 per cent in February.
The Labor Department reports the core consumer price index edged up by 0.1 per cent in February on the back of a 0.4 per cent gain in food prices.
Global markets
Wall Street gained Tuesday: The Dow Jones Industrial Average gained 89 points to close at 16,336, the S&P 500 gained 13 points to close at 1,872 and the NASDAQ gained 53 points to close at 4,333.
European markets rose on Tuesday: London's FTSE 100 Index rose 37 points, France's CAC 40 rose 41 points and Germany's DAX rose 62 points.
Asian markets ended higher on Tuesday: Japan’s Nikkei rose 134 points, Hong Kong’s Hang Seng added 110 points and China’s Shanghai Composite added 1.5 points.
The Australian share market closed 0.5 per cent higher yesterday following the Reserve Bank of Australia's (RBA) March meeting minutes: The S&P/ASX 200 Index gained 27 to finish at 5,345 on Tuesday. On the futures market the SPI is 14 points higher.
Currencies
The Australian dollar has remained strong following the Reserve Bank of Australia's release and at 7:30am was buying $US0.9128, 55.04 Pence Sterling, 92.57 Yen and 65.53 Euro cents.
Economic news due out today
Westpac Banking Corporation
(ASX:WBC) - Melbourne Institute: Leading Indexes of Economic Activity
Company news
Macquarie Group Limited
(ASX:MQG) has become the latest bank to adjust its prediction for more easing from Reserve Bank of Australia. Australia’s biggest listed investment bank now expects just one 25 basis point interest rate cut this year in the third quarter, from an earlier forecast of two reductions. The revised outlook comes as the RBA’s latest meeting minutes reiterated the central bank’s neutral bias and after Westpac Banking Corporation
(ASX:WBC) predicted a steady outlook for rates this year. Shares in Macquarie Group firmed 0.17 per cent on Tuesday to end at $54.50.
The first half results of Australia’s largest department store retailers will be in focus today as speculation of a potential $3 billion merger gains momentum. David Jones Limited
(ASX:DJS) will release its interim report today and Myer Holdings Limited’s
(ASX:MYR) results are expected tomorrow. Over the first quarter DJs improved its sales by 2.1 per cent to $424 million but the retailer warned conditions remain challenging. The company only yesterday revealed it has reappointed a strategic adviser to review a possible merger with Myer. Shares in David Jones rose 1.22 per cent on Tuesday to end at $3.33.
Ex-dividends today
Altium Limited
(ASX:ALU) paying a 4 cent unfranked dividend
Arowana International Limited
(ASX:AWN) paying a 2.4 cent unfranked dividend
SFG Australia Limited
(ASX:SFW) paying a 1.4 cent fully franked dividend
Ex-dividends tomorrow
Prime Financial
(ASX:PFG) paying a 0.4 cent fully franked dividend
The Reject Shop
(ASX:TRS) paying a 21.5 cent fully franked dividend
Commodities
Pulling back from a six-month high the price of gold has slipped $13.90 to $US1,359 an ounce for the April contract on Comex.
Silver has lost $0.41 to $20.86 for May.
Copper is flat at $2.95 a pound.
Oil has gained $1.62 to $US99.70 a barrel for April light crude in New York.
