The Australia share market is poised for a steady start after Wall Street closed a volatile session higher and ahead of China’s first quarter growth figures. While Europe dropped on ongoing tensions in Ukraine US stocks were buoyed by positive corporate earnings reports released during and after the session closed.
Closer to home the mining sector will be in focus today with China due to release its quarterly GDP numbers amid expectations for an annual growth rate of 7.3 per cent.
Production reports will continue to roll in from BHP Billiton Limited (ASX:BHP) and Fortescue Metals Group Limited (ASX:FMG), following yesterday’s well received reports from Rio Tinto Limited (ASX:RIO) and OZ Minerals Limited (ASX:OZL). Across commodity markets the price of and base and precious metals has lost ground and the oil price has also slipped amid speculation Libya could resume oil exports.
Global markets
Wall Street finished higher on Tuesday: The Dow Jones Industrial Average gained 89 points to close at 16,263, the S&P 500 gained 12 points to close at 1,843 and the Nasdaq gained 11 points to close at 4,034.
European markets lost ground on Tuesday: London's FTSE 100 Index dropped 42 points, France's CAC 40 dropped 39 points and Germany's DAX dropped 165 points.
Asian markets closed mixed on Tuesday: Japan’s Nikkei rose 87 points, Hong Kong’s Hang Seng fell 368 points, and China’s Shanghai Composite fell 30 points.
The Australian share market finished off the high yesterday following the release of the Reserve Bank of Australia’s (RBA) latest meeting minutes: The S&P/ASX 200 index rose 29 points on Tuesday to close at 5,388. On the futures market the SPI is pointing 9 points higher.
Currencies
The RBA’s meeting minutes pushed the Australian dollar under $US0.94 yesterday and at 7:20am the local currency remained lower against the greenback - buying $US0.9361, 55.98 Pence Sterling, 95.37 Yen and 67.78 Euro cents.
Economic news due out today
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Company news
David Jones Limited’s
(ASX:DJS) takeover bid from South African retailer Woolworths Holdings Limited (JSE:WHL) is set to go under the microscope by an independent expert. The department store retailer has appointed business advisory firm Grant Samuel to investigate if the $2.15 billion takeover offer is in the best interest of DJs shareholders ahead of it going to a shareholder vote in June. The David Jones board has already backed Woolworths’s $4 per share cash bid with DJ’s boss Paul Zahra claiming it is a compelling proposal. Shares in David Jones closed steady on Tuesday at $3.91.
Coca-Cola Amatil Limited
(ASX:CCL) has hosed down the impact of two credit rating cuts by Moody’s and Standard & Poor’s. The cuts come in the wake of the beverage giant’s surprise earnings downgrade last week which sent its shares south. However Coca-Cola has advised the changes to its credit rating are not expected to have any short to medium term impact on the company. Shares in Coca-Cola Amatil firmed 0.33 per cent following yesterday’s announcement to close at $9.09.
Ex-dividends
Clover Corporation
(ASX:CLV) paying a 0.5 cent fully franked dividend
Commodities
Gold has retreated $27.20 to $US1,300 an ounce for the June contract on Comex.
Silver has fallen $0.52 to $19.49 for May.
Copper has lost $0.06 to $2.99 a pound.
Oil has dropped $0.30 to $US103.75 a barrel for May light crude in New York.
