The Australian share market looks set for a positive start after Wall Street hit record highs and ahead of the release of the Federal Budget this evening. Optimism about the improving US economy saw the Dow and S&P 500 rise to record highs on Monday and the Nasdaq advance about 1.8 per cent. European markets also lifted and headed toward six-year highs while Asian markets surged and the Shanghai Composite Index rallied more than 2 per cent.
Global markets
Wall Street started the week stronger: The Dow Jones Industrial Average gained 112 points to close at 16,695, the S&P 500 gained 18 points to close at 1,897 and the Nasdaq gained 72 points to close at 4,144.
European markets also started the week higher: London's FTSE 100 rose 37 points, France's CAC 40 rose 16 points and Germany's DAX rose 121 points.
Asian markets closed mixed on Monday: Japan’s Nikkei lost 50 points, Hong Kong’s Hang Seng added 399 points, and China’s Shanghai Composite rallied 42 points.
The Australian share market posted a soft start to the week yesterday: The S&P/ASX 200 index lost 12 points on Monday to finish at 5,448. On the futures market the SPI is pointing 30 points stronger.
Currencies
The Australian dollar has eased slightly from Monday’s close at 7:20am was buying $US0.9363, 55.53 Pence Sterling, 95.63 Yen and 68.07 Euro cents.
Economic news due out today
Abbott government’s first Federal Budget
Australian Bureau of Statistics: Housing finance figures for March
Australian Bureau of Statistics: Residential property price index for eight capital cities over the March quarter
Company news
Qantas Airways Limited
(ASX:QAN) has issued its first junk-rated bonds in Australia and raised $300 million through eight-year notes. The move comes after Australia’s biggest airline had its senior unsecured rating lowered by Moody’s Investors Service earlier this year. Standard & Poor’s cut Qantas’ senior unsecured debt issue rating at the end of last year and both ratings agencies maintain a negative outlook for the company. Qantas says the transaction will extend its debt maturity profile and not affect its overall debt position. Shares in Qantas Airways dropped 1.21 per cent on Monday to close at $1.22 before the announcement was released.
The Government Investment Corporation of Singapore is understood to have divested its 8 per cent stake in property giant GPT Group
(ASX:GPT) for more than $500 million. The Singapore government's sovereign wealth fund GIC has reportedly asked investment bank UBS to execute the block trade at $3.81 per GPT security. The 132 million shares are expected be offered to UBS institutional investors and clients. Shares in GPT Group dropped 1.01 per cent on Monday to close at $3.92.
Commodities
Gold has gained $8.20 to $US1,295.80 an ounce for the June contract on Comex.
Silver has lifted $0.42 to $19.54 for May.
Copper has firmed $0.06 to $3.15 a pound.
Oil has risen $0.60 to $US100.59 a barrel for June light crude in New York.
