The ASX has surged 1 per cent this morning on news the US Federal Reserve will keep interest rates low for the near future.
The S&P 500 hit a record high and the NASDAQ reached a 14 year high. With US interest rates staying low the Aussie dollar is pushing just below $US0.94 this morning.
The major miners have made strong gains and the banks are also in the green.
The S&P/ASX 200 index is 54 points up at 5,437. On the futures market the SPI is 52 points higher.
Company news
APA Group
(ASX:APA) has lifted its 2014 earnings guidance while also announcing an increased dividend.
The energy infrastructure business expects earnings to fall within the range of $740 million and $750 million. The company estimates a distribution of $0.1875 will be paid per stapled security for the second half of the financial year. When added to the interim distribution, this represents a 2.1 per cent increase on the previous year’s distributions. Shares in APA are trading up 1.07 per cent on the news to $7.08.
Yancoal Australia Limited
(ASX:YAL) has gained approval for the stage 1 modification of the Moolarben coal mine paving the way for the extraction of an additional 30 million tonnes.
The coal developer holds an 80 per cent stake in the mine which is currently operating at a capacity of 8 million tonnes per annum, run of mine production. Despite the news, shares in Yancoal are trading down 5.88 per cent at $0.24.
Best and worst performers The best performing sector is materials gaining 204 points to 9,733. Shares in Sirius Resources
(ASX:SIR) have risen 4.67 per cent and trading at $3.36. Shares in Fortescue Metals Group Limited
(ASX:FMG) and Beadell Resources Limited
(ASX:BDR) are also stronger.
The worst performing sector is real estate investment trusts, falling 0.3 points to 1,075. Shares in Stockland
(ASX:SGP) have fallen 0.5 per cent, trading at $3.97. Shares in Westfield Group
(ASX:WDC) and CFS Retail Property Trust 1
(ASX:CFX) are also lower.
Gold and the dollar
Gold is trading at $US1,277 an ounce.
The Australian dollar is buying $US0.9399
