News: Outlook: ASX eyes gains before Fed meets

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The Australian share market looks to be eyeing a positive start to the session ahead of the outcome of a US Federal Reserve meeting. Wall Street advanced more than 1 per cent amid expectations the Fed will soon announce the end of quantitative easing. US stocks were also given a boost by upbeat earnings reports and data showing a jump in consumer confidence this month while durable goods orders fell.

 

On the local front there is no major economic news scheduled but a number of companies will continue to hold annual general meetings including DEXUS Property Group (ASX:DXS), JB Hi-Fi Limited (ASX:JBH), NIB Holdings Limited (ASX:NHF) and Transpacific Industries Group Limited (ASX:TPI).

 

Global markets

 

Wall Street headed higher on Tuesday: The Dow Jones Industrial Average gained 1.1 per cent to close at 17,006, the S&P 500 gained 1.2 per cent to close at 1,985 and the Nasdaq gained 1.8 per cent to close at 4,564.

 

European markets rose on Tuesday: London's FTSE 100 lifted 0.6 per cent, France's CAC 40 lifted 0.4 per cent and Germany's DAX lifted 1.9 per cent.

 

Asian markets finished mixed on Tuesday: Japan’s Nikkei slipped 0.4 per cent, Hong Kong’s Hang Seng jumped 1.6 per cent, and China’s Shanghai Composite surged 2.1 per cent.

 

The Australian share market ended almost unchanged yesterday after trading in the red for most of the session: The S&P/ASX 200 index slipped 6 points to close at 5,453 on Tuesday. On the futures market the SPI is 29 points higher. 

 

Currencies

The Australian dollar at 7:30am was buying $US0.8858, 54.91 Pence Sterling, 95.82 Yen and 69.58 Euro cents.

 

Company news

 

Coca-Cola Amatil Limited (ASX:CCL) has outlined plans to cut 57 jobs as it shuts its Bayswater production factory over the following year. The beverage manufacturer will relocate three production lines from the facility to bigger capital cities as part of a productivity and efficiency drive. Managing Director Alison Watkins says while the company regrets closing Bayswater returning to growth is an imperative. The cost cuts come after Coca-Cola warned its annual profit is likely to decline from the prior year after its interim profit dropped almost 16 per cent. Shares in Coca-Cola Amatil fell 0.81 per cent on Tuesday to close at $8.61 following the announcement.  

 

Domino's Pizza Enterprises Limited (ASX:DMP) has boosted its annual profit guidance after better than expected pizza sales. Australia’s largest pizza manufacturer now expects its underlying profit to grow 25 per cent to $57 million over the current financial year. The anticipated result is up from guidance of 20 per cent growth and comes after Domino’s reported a solid start to the financial year at its annual general meeting yesterday. CEO Don Meij says while the company remains cautious with eight months of trading ahead Domino's is confident of continuing the current momentum. Shares in Domino's Pizza Enterprises fell 2.38 per cent on Tuesday to close at $28.27 following the announcement.  

 

Ex-dividends

 

Australian Vintage Limited (ASX:AVG) paying a 2.2 fully franked dividend

Clover Corporation Limited (ASX:CLV) paying a 0.5 fully franked dividend

 

Commodities 

Gold has gained $1.10 to $US1,229 an ounce for the December contract on Comex. 

Silver has lifted $0.07 to $17.23 for December. 

Copper has added $0.03 to $3.09 a pound. 

Oil has put on $0.42 to $US81.42 a barrel for December light crude in New York.