Outlook: Markets gain as geopolitical fears fade

Market Reports

by Lelde Smitts

Gains on global equity markets look to ripple onto the Australian share market today. Local shares are poised to extend the week’s gains as geopolitical fears faded overnight. Traders were in a buying mood despite ongoing tensions between Russia and Ukraine and conflict in the Middle East. Closer to home earnings reports will continue to roll in from Domino's Pizza Enterprises Limited (ASX:DMP), Bradken Limited (ASX:BKN and GPT Group (ASX:GPT)
 
Global markets
 
Wall Street started the week higher: The Dow Jones Industrial Average rose 0.1 per cent to close at 16,570, the S&P 500 rose 0.3 per cent to close at 1,937 and the Nasdaq rose 0.7 per cent to close at 4,401.
 
European markets lifted on Monday: London's FTSE 100 gained 1 per cent, France's CAC 40 gained 1.2 per cent and Germany's DAX gained 1.9 per cent.
 
Asian markets started the week stronger: Japan’s Nikkei jumped 2.4 per cent, Hong Kong’s Hang Seng advanced 1.3 per cent, and China’s Shanghai Composite increased 1.4 per cent.
 
The Australian share market snapped a six day losing streak yesterday and lifted into the new week: The S&P/ASX 200 index rose 22 points on Monday to close at 5,457. On the futures market the SPI is 22 points higher. 
 
Currencies
 
The Australian dollar at 7:30am was buying $US0.9265, 55.21 Pence Sterling, 94.67 Yen and 69.24 Euro cents.
 
Economic news due out today 
 
National Australia Bank Limited (ASX:NAB): Business survey including a read on conditions and confidence
 
Company news
 
Explosives manufacturer Incitec Pivot Limited (ASX:IPL) has had its outlook cut by Standard & Poor’s Ratings Services. The credit ratings agency has lowered its outlook to “negative” from “stable” as the company ramps up the construction of its Louisiana project in the US. Incitec Pivot has affirmed the scope, timing and cost of the project remain unchanged and the project is on track and slated for completion in 2016. Shares in Incitec Pivot closed 1.06 per cent higher at $2.86 following the announcement. 
 
Shares in Coffey International Limited (ASX: COF) jumped yesterday after rebounding to an annual profit $4.4 million from a loss of $1 million the year before. The engineering group says the positive results were achieved despite tough market conditions and the company is now wholly focussed on its clients and winning new work. Managing Director John Douglas says the fundamentals of the business have now changed and Coffey is dedicated to building client value and driving sales success. Shares in Coffey International closed 11.54 per cent higher at $0.29 following the announcement. 
 
Ex-dividends today
 
AMCIL Limited (ASX:AMH) paying a 6.5 cent fully franked dividend
BKI Investment Company Limited (ASX:BKI) paying a 3.5 cent fully franked dividend
Tabcorp Holdings Limited (ASX:TAH) paying a 8 cent fully franked dividend
 
Ex-dividends tomorrow
 
Genworth Mortgage Insurance Australia (ASX:GMA) paying a 2.8 cent fully franked dividend
Rio Tinto Limited (ASX:RIO) paying a fully franked dividend of $1.03
Titan Energy Services Limited (ASX:TTN) paying a 4 cent fully franked dividend
 
Commodities 
 
Gold has lost $0.50 to $US1,310.50 an ounce for the December contract on Comex. 
Silver has firmed $0.15 to $20.10 for September. 
Copper has added $0.001 to $3.17 a pound. 
Oil has risen $0.43 to $US98.08 a barrel for September light crude in New York.