Following yesterday’s steep falls the Australian share market looks to recover some ground on the back of positive leads. Wall Street was lifted by better than expected earnings results and a recovery among high growth shares as the US Federal Reserve gears up for its policy meeting.
Closer to home Woodside Petroleum Limited
(ASX:WPL) will hold its annual general meeting and Origin Energy Limited
(ASX:ORG) is set to release its quarterly production report. Woolworths Limited
(ASX:WOW) will also be in the limelight when it releases sales results following a mixed sales result from its rival retail and industrial conglomerate Wesfarmers
(ASX:WES) yesterday.
Global markets
Wall Street extended this week’s winning streak on Tuesday: The Dow Jones Industrial Average advanced 87 points to close at 16,535, the S&P 500 advanced 9 points to close at 1,878 and the Nasdaq advanced 29 points to close at 4,104.
Technology stocks boosted European markets on Tuesday as Germany reported softer than expected inflation figures: London's FTSE 100 gained 70 points, France's CAC 40 gained 37 points and Germany's DAX gained 138 points.
Asian markets closed mixed on Tuesday: Japan’s Nikkei lost 141 points, Hong Kong’s Hang Seng added 321 points, and China’s Shanghai Composite added 17 points.
The Australian share market snapped a seven day winning streak yesterday and dropped 0.9 per cent: The S&P/ASX 200 Index retreated 50 points on Tuesday to finish at 5,487. On the futures market the SPI is pointing 19 points higher.
Currencies
The Australian dollar has remained relatively steady against the greenback and at 7:20am was buying $US0.9269, 55.1 Pence Sterling, 95.14 Yen and 67.11 Euro cents.
Economic news due out today
Reserve Bank of Australia: Financial aggregates for March
Company news
Qantas Airways Limited
(ASX:QAN) has blamed Easter falling in April for a drop in its passenger numbers and ticket yields in March. Australia’s largest airline’s monthly traffic report shows passenger numbers declined 0.6 per cent, capacity lifted 0.8 per cent and demand sank 5.4 per cent last month. Qantas has also advised its yields are lower for the financial year to date but over the current calendar year the company has added about 200,000 new members to its loyalty program. Shares in Qantas Airways dipped 0.41 per cent on Tuesday to close at $1.22.
Cabcharge Australia Limited’s
(ASX:CAB) founder and executive chairman has been forced to step down as he prepares to battle against an aggressive form of cancer. The taxi service provider has told the market Reg Kermode will depart from May 12, 2014 after almost four decades with the company. Mr Kermode will retain his position as CEO to assist the new Chairman and CEO of the board’s choice through a transition process. Shares in Cabcharge Australia dropped 2.28 per cent on Tuesday to close at $3.85.
Commodities
Gold has slipped $2.70 to $US1,296.30 an ounce for the June contract on Comex.
Silver has eased $0.10 to $19.49 for May.
Copper has lost $0.04 to $3.07 a pound.
Oil has gained $0.44 to $US101.28 a barrel for June light crude in New York.
