The Australian share market is poised for a positive start after global markets rose on hopes the US Federal Reserve will hold off hiking rates. Wall Street posted a turnaround performance as the central bank’s latest meeting minutes showed the Fed is in no rush to tighten monetary policy. Closer to home while there is no major economic news due in Australia today manufacturing data is due from China amid expectations for the read will improve from April’s 48.1. After a rough week for miners the sector could be set for more pain after metals prices continues to weaken overnight while oil prices have lifted.
Global markets
Wall Street rose on Wednesday: The Dow Jones Industrial Average rose 159 points to close at 16,533, the S&P 500 rose 15 points to close at 1,888 and the Nasdaq rose 35 points to close at 4,132.
European markets also gained on Wednesday: London's FTSE 100 gained 20 points, France's CAC 40 gained 17 points and Germany's DAX gained 59 points.
Asian markets closed mixed on Wednesday: Japan’s Nikkei lost 33 points, Hong Kong’s Hang Seng added 2 points, and China’s Shanghai Composite added 17 points.
The Australian share market lifted from yesterday’s lows to end on positive territory: The S&P/ASX 200 index closed 4 points higher on Wednesday at 5,425. On the futures market the SPI is pointing 23 points higher.
Currencies
The Australian dollar has firmed from yesterday’s close and at 7:20am was buying $US0.9254, 54.77 Pence Sterling, 93.84 Yen and 67.63 Euro cents.
Company news
Adelaide Brighton Limited
(ASX:ABC) dropped to yesterday’s worst performer in the benchmark index. The cement manufacturer’s incoming CEO Martin Brydon flagged flat profit for the year ahead at the company’s annual general meeting. The forecast comes just a few months after Adelaide Brighton warned it will take a profit hit from 2016 after a key customer decided to build its own facilities in South Australia. Shares in Adelaide Brighton fell 5.87 per cent on Wednesday to close at $3.53.
Austin Engineering Limited
(ASX:ANG) plunged after slashing its annual earnings guidance and announcing an acquisition. The mining products manufacturer and service provider now expects EBITDA to drop to between $15 million and $18 million, less than half of its original guidance range. Austin Engineering also revealed it will buy South African business VR Steel as it continues to diversify away from the domestic market. Shares in Austin Engineering plunged 17.76 per cent on Wednesday to close at $1.25.
Commodities
Gold has dipped $6.50 to $US1,288.10 an ounce for the June contract on Comex.
Silver has slipped $0.06 to $19.34 for May.
Copper has lost $0.02 to $3.12 a pound.
Oil has lifted $1.74 to $US104.07 a barrel for July light crude in New York.
