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The SPI is pointing to a soft start for the Australian share market despite positive offshore leads. Global markets advanced overnight and Wall Street was buoyed by upbeat economic indicators. US traders were encouraged by a strong rise in housing starts and tame inflation data, offsetting ongoing concerns about tensions in Ukraine and the Middle East.
In Australia traders will respond to BHP Billiton Limited’s (ASX:BHP) annual earnings released after the local market closed yesterday. The global miner’s stock dropped in London overnight despite posting a 23 per cent annual profit jump and revealing a new $15 billion spin off entity.
Major Australian companies due to report today include AGL Energy Limited (ASX:AGK), Fortescue Metals Group Limited (ASX:FMG), Wesfarmers Limited (ASX:WES), Woodside Petroleum Limited (ASX:WPL), Coca-Cola Amatil Limited (ASX:CCL), Brambles Limited (ASX:BXB) and SEEK Limited (ASX:SEK).
Global markets
Wall Street lifted on Tuesday: The Dow Jones Industrial Average rose 0.5 per cent to close at 16,920, the S&P 500 rose 0.5 per cent to close at 1,982 and the Nasdaq rose 0.4 per cent to close at 4,528.
European markets moved higher on Tuesday: London's FTSE 100 gained 0.6 per cent, France's CAC 40 gained 0.6 per cent and Germany's DAX gained 1 per cent.
Asian markets ended stronger on Tuesday: Japan’s Nikkei increased 0.8 per cent, Hong Kong’s Hang Seng increased 0.7 per cent, and China’s Shanghai Composite increased 0.3 per cent.
Strong earnings results buoyed the Australian share market 0.7 per cent higher yesterday: The S&P/ASX 200 index gained 37 points on Tuesday to close at 5,624. On the futures market the SPI is 8 points lower.
Currencies
The Australian dollar at 7:30am was buying $US0.9304, 56.01 Pence Sterling, 95.75 Yen and 69.87 Euro cents.
Economic news due out today
Westpac Banking Corporation (ASX:WBC)-Melbourne Institute: Leading Indexes of Economic Activity
Commonwealth Bank of Australia (ASX:CBA): Business sales indicator for July
Expected earnings reports
AGL Energy Limited (ASX:AGK) will unveil its annual results today after flagging a fall in earnings last month. The energy producer said at the time full year earnings could drop by about $186 million due to the repeal of the carbon tax. AGL last month confirmed its annual underlying net profit is expected to be in-line with market consensus at $561 million, despite the impact of unseasonably warm weather in May and June. Shares in AGL Energy rose 0.2 per cent on Tuesday to close at $14.68 ahead of today’s results.
Ahead of releasing annual earnings results today Fortescue Metals Group Limited (ASX:FMG) has revealed board departures to come to effect at its annual general meeting in November. The iron ore miner says three directors, including Deputy Chairman Herb Elliott and non-executive directors Graeme Rowley and Herbert Scruggs, will retire later this year. Fortescue’s Chairman Andrew Forrest has described Mr Elliott and Mr Rowley as the company’s pioneers who have overseen the company’s growth since they joined in 2003. Shares in Fortescue Metals Group gained 2.21 per cent on Tuesday to close at $4.62 ahead of revealing board changes, and, today’s results.
Ex-dividends
JB Hi-Fi Limited (ASX:JBH) paying a 29 cent fully franked dividend
Korvest Limited (ASX:KOV) paying a 31 cent fully franked dividend
Magellan Financial Group Limited (ASX:MFG) paying a 21.8 cent fully franked dividend
Merchant House Limited (ASX:MHI) paying a 0.5 cent unfranked dividend
Suncorp Group Limited (ASX:SUN) paying a 70 cent fully franked dividend
Commodities
Gold has dropped $2.60 to $US1,297 an ounce for the December contract on Comex.
Silver has fallen $0.22 to $19.41 for September.
Copper has eased $0.02 to $3.09 a pound.
Oil has lost $1.93 to $US94.48 a barrel for September light crude in New York.
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