The Australian share market is set to be supported by positive leads after US and UK markets started their trading week higher and the S&P 500 again rose to a fresh record. Both markets were closed on Monday for public holidays but gained ground on Tuesday on the back of European election results and upbeat US data. On the local front the Australian share market will digest a series of economic reports providing indications on the strength of the housing market and broader economy.
US economic news
The Conference Board's index on consumer confidence rose to 83 in May from 81.7 the month before.
S&P/Case Shiller reported US home prices in 20 cities increased 0.9 per cent in March from the month before.
The Commerce Department reported durable goods orders gained 0.8 per cent in April against expectations for a fall of 1.3 per cent.
Global markets
Wall Street rose into its trading week after Monday’s Memorial Day public holiday: The Dow Jones Industrial Average gained 69 points to close at 16,676, the S&P 500 gained 11 points to close at 1,912 and the Nasdaq gained 51 points to close at 4,237.
European markets closed higher on Tuesday: London's FTSE 100 started its trading week 29 points higher, France's CAC 40 lifted 3 points and Germany's DAX lifted 48 points.
Asian markets closed mixed on Tuesday: Japan’s Nikkei added 34 points, Hong Kong’s Hang Seng lost 19 points, and China’s Shanghai Composite lost 7 points.
The Australian share market continued its weak performance on Tuesday after both US and UK markets closed on Monday: The S&P/ASX 200 index lost 1.1 points yesterday to finish at 5,512. On the futures market the SPI is pointing 6 points higher.
Currencies
The Australian dollar at 7:20am was buying $US0.9259, 55.1 Pence Sterling, 94.46 Yen and 67.93 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Construction work done for the March quarter
Westpac Banking Corporation
(ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Housing Industry Association- Commonwealth Bank of Australia
(ASX:CBA): Affordability Report for the March quarter
Company news due out today
Conglomerate Wesfarmers Limited
(ASX:WES) is set to hold a strategy briefing day
Mineral sands producer Iluka Resources Limited
(ASX:ILU) will have its annual general meeting
Global provider of gaming solutions Aristocrat Leisure Limited
(ASX:ALL) is poised to release its results for the first half of fiscal 2014. Over fiscal 2013 the gaming machine manufacturer boosted its net profit by 17 per cent despite a fall in revenue. At the time of release the company attributed the result to strong growth from its North American business and CEO Jamie Odell flagged further growth in profitability over the coming year. Shares in Aristocrat Leisure are up about 10 per cent this year and rose 0.39 per cent on Tuesday to close at $5.17 ahead of today’s results.
Programmed Maintenance Services Limited
(ASX:PRG) is set to release its full year results. In the first half the provider of staffing, maintenance and project services reported a steady profit result with the prior year while revenue dipped due to a drop in activity from the company’s resources division. At the time of releasing first half results Managing Director Chris Sutherland expected the company’s full year profit result to be similar to last year's. Shares in Programmed Maintenance Services are down about 20 per cent this year and closed steady on Tuesday at $2.79 ahead of today’s results.
Ex-dividends today
Aurora Sandringham Dividend Income Trust
(ASX:AOD) paying a 0.51 cent unfranked dividend
DuluxGroup Limited
(ASX:DLX) paying a 10 cent fully franked dividend
Ex-dividends tomorrow
E & A Limited
(ASX:EAL) paying a 2.75 cent fully franked dividend
Orica Limited
(ASX:ORI) paying a 40 cent, 40 per cent franked dividend
Commodities
Gold has dropped $26.20 to $US1,265.50 an ounce for the June contract on Comex.
Silver has fallen $0.35 to $19.07 for May.
Copper has added $0.01 to $3.18 a pound.
Oil has slipped $0.24 to $US104.11 a barrel for July light crude in New York.
