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The Australian share market looks to lift into the session after the US Federal Reserve dropped its patient stance on hiking interest rates, which last rose in June 2006. While the word was left out of the statement Fed chair Janet Yellen later said, just because the word ‘patient’ was removed it did not mean the Fed will be impatient. US markets spiked to session highs amid suggestions America’s central bank could be preparing to tighten monetary policy as soon as mid this year. The Fed has however downgraded its outlook for the pace of growth and inflation which put pressure on the US dollar.
Global markets
Wall Street rallied on Wednesday: The Dow Jones Industrial Average gained 1.3 per cent to close at 18,076, the S&P 500 gained 1.2 per cent to close at 2,100 and the Nasdaq gained just under 1 per cent to close at 4,983.
European markets ended mixed on Wednesday: London's FTSE 100 jumped 1.6 per cent, France's CAC 40 added 0.1 per cent and Germany's DAX declined 0.5 per cent.
Asian markets finished higher on Wednesday: Japan’s Nikkei rose 0.6 per cent, Hong Kong’s Hang Seng rose 0.9 per cent, and China’s Shanghai Composite rose 2.1 per cent.
The Australian share market traded in the red yesterday but finished flat ahead of the Fed’s monetary policy statement: The S&P/ASX 200 index closed just 0.2 points higher at 5,842. On the futures market the SPI is 27 points stronger.
Currencies
The Australian dollar at 7:30am was buying $US0.7785, 51.92 Pence Sterling, 93.44 Yen and 71.58 Euro cents.
Economic news due out today
Australian Bureau of Statistics: Statistics on the employment market
Reserve Bank of Australia: Quarterly Bulletin
Company news
All eyes will be on Myer Holdings Limited (ASX:MYR) when it releases results for the first half of the 2015 financial year today after reporting lower than expected flat sales in the first quarter. The department store retailer’s interim financials will come just weeks following the departure of its CEO Bernie Brookes and Chief Financial Officer Mark Ashby. Reports have speculated the company could be considering a review of its stores and expansion of its online business and traders will certainly be listening to Myer’s plans to boost sales. Shares in Myer Holdings fell 2.24 per cent to close at $1.53 on Wednesday ahead of today’s results.
Westpac Banking Corporation (ASX:WBC) will donate $100,000 to support recovery efforts in Vanuatu after Tropical Cyclone Pam hit the Pacific Islands over the weekend. The bank’s donation exceeds ANZ Banking Group’s (ASX:ANZ) $70,000 donation and Commonwealth Bank of Australia’s (ASX:CBA) $50,000 donation announced earlier this week. Westpac says the funds will enable the Red Cross to respond quickly to immediate needs such as food and clean water and longer-term rebuilding and recovery. Shares in Westpac Banking Corporation firmed 0.36 per cent to close at $38.68 on Wednesday following the announcement.
Ex-dividends
McPherson's Limited (ASX:MCP) paying a 6 cent fully franked dividend
Money3 Corporation Limited (ASX:MNY) paying a 2.5 cent fully franked dividend
The Reject Shop Limited (ASX:TRS) paying a 16.5 cent fully franked dividend
Commodities
Gold has risen $3.10 to $US1,151 an ounce for the April contract on Comex.
Silver has slipped $0.04 to $15.54 for May.
Copper has eased $0.06 to $2.57 a pound.
Oil has gained $1.20 to $US44.66 a barrel for April light crude in New York.
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