The Australian share market is poised to gain at open after Wall Street recovered from earlier losses over a volatile session to end mostly higher. US stocks were encouraged by deal making between European and American companies but weakness in technology stocks weighed as did lingering tensions between Russia and Ukraine. Elsewhere in the US corporate earnings results and economic reports kept coming in ahead of the Federal Reserve Board's policy meeting which is expected to reveal more tapering of economic stimulus.
US economic news
US pending home sales gained for the first time in nine months: The National Association of Realtors reports its pending home sales index rose 3.4 per cent to 97.4 in March, beating expectations for a 1 per cent lift.
Global markets
Wall Street closed mixed on Monday: The Dow Jones Industrial Average gained 87 points to close at 16,449 and the S&P 500 gained 6 points to close at 1,869 but the Nasdaq closed 1 point lower at 4,074.
European markets moved higher on Monday: London's FTSE 100 Index added 14 points, France's CAC 40 added 17 points and Germany's DAX added 45 points.
Asian markets started the week in negative territory: Japan’s Nikkei lost 141 points, Hong Kong’s Hang Seng lost 91 points, and China’s Shanghai Composite lost 33 points.
The Australian share market closed higher for the seventh straight session on Monday: The S&P/ASX 200 index added 5 points on Monday to finish at 5,536. On the futures market the SPI is pointing 20 points higher.
Currencies
The Australian dollar has slipped from Monday’s local close and at 7:20am was buying $US0.9259, 55.1 Pence Sterling, 94.9 Yen and 66.86 Euro cents.
Company news
The supermarket giants will be in focus today with Wesfarmers Limited
(ASX:WES) due to release third quarter sales results. Analysts have tipped the conglomerate’s supermarket arm Coles will post sales growth of about 3.8 per cent from its food and liquor division. The results come amid expectations Woolworths Limited
(ASX:WOW) is narrowing the gap with its rival Coles and set to post a similar sales growth result. Shares in Wesfarmers slipped 0.11 per cent on Monday to close at $43.89.
G8 Education Limited
(ASX:GEM) will today told its annual general meeting and extraordinary general meeting. The provider of developmental and educational child care services’ stock has climbed more than 90 per cent over the past year on the back of growth initiatives and acquisitions. Last month G8 told the market its latest $228 million acquisition will see its centre portfolio jump by my more than 28 per cent. Shares in G8 Education dipped 1.87 per cent on Monday to close at $4.73.
Ex-dividends
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.5 cent unfranked dividend
Magellan Flagship Fund Limited
(ASX:MFF) paying a 1 cent unfranked dividend
PPK Group Limited
(ASX:PPK) paying a 1.5 cent fully franked dividend
Commodities
Stronger than expected US home sales figures has pushed the price of gold down $1.80 to $US1,299 an ounce for the June contract on Comex.
Silver has eased $0.10 to $19.59 for May.
Copper has lost $0.01 to $3.11 a pound.
The price of oil has risen $0.24 to $US100.84 a barrel for June light crude in New York.
