News: Outlook: ASX looks up before RBA rate call

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The Australian share market looks to open higher ahead of the Reserve Bank of Australia’s interest rate decision today. Wall Street was given a boost overnight by upbeat earnings and economic data showing US factory orders grew in March after falling the month before. Commsec is expecting the central bank to commit to further stimulus and says the market is pricing 58 per cent for a 25 basis point cut. 

 

Global markets

 

Wall Street moved higher on Monday: The Dow Jones Industrial Average gained 0.3 per cent to close at 18,070, the S&P 500 gained 0.3 per cent to close at 2,114 and the Nasdaq gained 0.2 per cent to close at 5,017.

 

European markets started the week stronger: London's FTSE 100 was closed for a public holiday on Monday, France's CAC 40 added 0.7 per cent and Germany's DAX jumped 1.4 per cent.

 

Asian markets ended mixed on Monday: Japan’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng slipped 0.03 per cent, and China’s Shanghai Composite advanced 0.9 per cent.

 

The Australian share market drifted throughout the session to end just 0.2 per cent higher yesterday. The S&P/ASX 200 index ended 13 points higher at 5,828 on Monday. On the futures market the SPI is 29 points higher. 

Currencies 

 

The Australian dollar at 7:30am was buying $US0.7837, 51.85 Pence Sterling, 94.16 Yen and 70.31 Euro cents.

 

Economic news due out today 

 

Reserve Bank of Australia: May board meeting and interest rate decision

 

Australian Bureau of Statistics: International trade in goods and services data for March

 

Australian Industry Group: Performance of Services Index for April

 

Dun and Bradstreet: Business expectations survey 

 

ANZ Banking Group (ASX:ANZ)-Roy Morgan: Weekly consumer confidence survey

 

Housing Industry Association: New home sales figures for March

 

Company news

Following Westpac Banking Corporation’s (ASX:WBC) disappointing result yesterday ANZ Banking Group (ASX:ANZ) will today release its first half financial report. Ahead of the announcement the bank revealed yesterday it will sell its Esanda Dealer Finance business as part of its strategy on focussing on ANZ branded products. ANZ says the sale represents $8.3 billion in lending assets and media reports speculate the divestment could generate about $1.5 billion of proceeds for the bank. Shares in ANZ Banking Group fell 2.66 per cent to close at $33.24 on Monday. 

 

Downer EDI Limited (ASX:DOW) looks to have scored a $70 million underground mining contract for services at the CSA copper mine in New South Wales. The engineering company has received the letter of intent from a subsidiary of Glencore plc. While it is subject to parties executing a binding agreement Downer expects to start work from July. Shares in Downer EDI rose 1.54 per cent to close at $4.63 on Monday. 

 

Ex-dividends

 

Tasmania Mines Limited (ASX:TMM) paying a 3 cent fully franked dividend

Commodities 

Gold has risen $12.30 to $US1,187 an ounce for the June contract on Comex. 

Silver has gained $0.30 to $16.44 for July. 

Copper has declined $0.01 to $2.92 a pound. 

Oil has dropped $0.22 to $US58.93 a barrel for June light crude in New York.