Political uncertainty remaining the dominant theme for European markets.
The Australian market has opened higher following strong leads from US markets. Live updates throughout the day. All times in AEDT.
1.11pm: Steady growth forecast for economy
Global credit rating agency Standard & Poor's expects Australian economic growth will remain close to trend in coming years, as public debt peaks at a low level.
But S&P, which rates Australia at a top ranking triple-A with a stable outlook, says the local economy does have vulnerabilities.
"The economy holds a large amount of offshore debt, households retain substantial debt because of high house prices and its banks are reliant on foreign investor funding," associate director Craig Michaels said.
12.35pm: Stocks continue to rise
The Australian share market continued to rise in morning trade after a strong session on Wall Street and the release of mostly encouraging earnings reports locally.
At 12.03pm AEDT today, the benchmark S&P/ASX200 index was up 31.1 points, or 0.62 per cent, at 5034.7 points, while the broader All Ordinaries index was up 30.4 points, or 0.61 per cent, to 5052.3 points.
On the ASX 24, the March share price index futures contract was up 37 points at 5015 points, with 14,085 contracts traded.
"Corporate reports seem to be okay today, and reporting this month has been in line with expectations, with the odd surprise and the odd disappointment," Burrell Stockbroking director Richard Herring said. "So, it's been quite encouraging, given the wider market's expectation of complete disappointment, in terms of earnings."
11.32am: ABS figures just out
Total construction work done in Australia fell 0.1 per cent in the December quarter, according to official data.
The median forecast among economists was for total construction work done to have risen 1.5 per cent for the quarter.
Over the year to the December quarter, the volume of construction work done was up 11.9 per cent, the Australian Bureau of Statistics said on Wednesday.
The ABS said total building work done in the December quarter, including homes and non-residential buildings
like offices and shops, rose 1.8 per cent from the September quarter.
Engineering work done, which includes mines, roads, bridges and the like, was down 1.3 per cent in the quarter.
11.10am: Dollar edges higher against Euro
The dollar edged higher against the euro after Ben Bernanke confirmed the US Fed's stimulus program would continue, while the yen traded flat ahead of the nomination of a new Bank of Japan chief. At 09.00 AEDT the euro was at $1.3061, compared to $1.3065 late on Monday.
11.05am: Here's some of the biggest losers and gainers from CommSec:
10.55am: Positive comments from Ben Bernanke yesterday in relation to quantitative easing (pumping money into the system) gave investors confidence and is having a knock on affect on our markets after yesterday's sell-off.
IG Markets analyst Stan Shamu said:
"We did see a massive turnaround in US trade, triggered mainly by some better than expected economic data, with consumer sentiment coming in much stronger than expected. Especially with (US Federal Reserve Chairman) Dr Ben Bernanke coming out with that testimony (to Congress), that really calmed investors' nerves about quantitative easing. It certainly seems like we've got some positive momentum behind us."
10.40am: From the companies reporting today:
- Westfield Group gained 12 cents, or 1.08 per cent, to $11.20.
- James Hardie's stocks were also up 12 cents, or 1.28 per cent, to $9.47 at 1033 AEST
- AGL Energy put on 56 cents, or 3.69 per cent, to $15.75
- UGL fell 48 cents, or 4.4 per cent, to $10.42
10.23am: At 10.23am (AEDT), the benchmark S&P/ASX200 index was up 37.2 points, or 0.74 per cent, at 5040.8, while the broader All Ordinaries index was up 35.3 points, or 0.70 per cent, at 5057.1.
On the ASX 24, the March share price index futures contract was up 46 points at 5024, with 9,487 contracts traded.
Stock Move Price
- AMP +0.03% to $5.36
- ANZ Bank +0.09% to $28.25
- BHPBilton +0.21% to $36.56
- CBA 0.63% to $66.10
- NAB 0.14% to $30.09
- NewsCorp +0.41% to $28.13
- Rio Tinto +0.50% to $66.07
- TelstraCp +0.015% to $4.61
- WestpacBk +0.12% to $30.35
- Woodside +0.09% to $36.43
- Woolwrths +0.25% to $34.19
10.05am: AT THE OPEN: The benchmark S&P/ASX200 index was up 16.83, or 0.34 per cent, at 5020.3 points.
9.50: Building products group James Hardie has trimmed its earnings forecast for the year, saying conditions in the housing market remain uncertain.
The group on Wednesday revealed it had made a net operating profit of $US31.5 million ($A30.95 million) in the third quarter to December 31, up from a loss of $US4.8 million ($A4.72 million) a year earlier.
The results include the company's asbestos-related costs, plus regulatory costs and tax adjustments.
Excluding those costs, operating profit rose to $US28.8 million ($A28.29 million) from $US27.7 million ($A27.21 million).
Chief executive Louis Gries said that while the US housing market had gained momentum, earnings growth had been constrained by lower sales prices and higher costs.
But, he said, if the US market continued its recovery, earnings were expected to rise.
9.45am: Engineering firm UGL's first half profit has slumped by 53 per cent due to $25 million in costs from a restructure.
UGL made a net profit of $26 million in the six months to December 31, down from $55.4 million in the previous corresponding period.
Underlying net profit, which excludes the costs of its restructure and rebranding of one of its businesses, was $51 million in the six months to December, down from $72.2 million in the previous corresponding period.
9.30am: Half an hour until market opens. In the mean time let's have a quick look at how Italy has sent the markets into a frenzy:
The Italian connection:
The Italian election sent European stocks plummeting overnight. Former Prime Minister Silvio Berlusconi almost got re-elected, sending all the austerity measures implemented by Mario Moni into doubt. Eoin Doyle wrote:
The fear is that a divided parliament in Italy would make the implementation of the austerity medicine (cutting public debt and spending) more difficult and would put a spanner in the works of the European recovery project - something that makes markets very nervous.
Italy is Europe’s third largest economy and how it performs and who is in power matters.
Read more on How Italian voters tanked global markets here.
8.50am: AGL Energy's acquisition of a major Victorian power plant has contributed to a significant rise in first half profit to $365 million.
AGL acquired Loy Yang A, Australia's third largest coal fired power station, in June 2012.
The contribution of earnings from Loy Yang helped AGL's net profit in the six months to December 31 rise from $117 million in the previous corresponding period. Read more here
8.45am: Westfield Group lifts profits
Shopping centre developer Westfield Group's annual profit has grown by 18 per cent as income from its centres across the world increased.
The group, which manages 105 shopping centres in five countries, made a $1.72 billion profit in the year to December 31, up from $1.532 billion in 2011.
Joint chief executives Peter Lowy and Steven Lowy said 2012 was a year in which the company made several changes to its property portfolio as it aims to improve its returns to shareholders.
"The performance for the year has been very good and in line with expectations," they said today.
7.00am: The Australian market looks set to open higher after a positive performance on Wall Street buoyed by upbeat earnings results and after Federal Reserve chairman Ben Bernanke said US economic growth had rebounded from the fourth quarter.
At 6.30am AEDT today, the March share price index futures contract was up 20 points at 4998.
Making news today:
Economic news
In economic news today, the Australian Bureau of Statistics is due to release construction work done, December quarter, figures.
Company news:
- Westfield Group full year results
- Sydney Airport full year results
- Prime Media Group first half results
- Slater & Gordon first half results
- Wotif.com first half results
- AGL Energy first half results
- UGL first half results
- James Hardie Industries third quarter results
At the close yesterday
In Australia, the market yesterday closed lower but pared back earlier heavy falls.
The benchmark S&P/ASX200 index closed down 52.2 points, or 1.03 per cent, at 5003.6 points, while the broader All Ordinaries index had fallen 50.9 points, or 1.0 per cent, to 5021.8 points.
Dollar
The Australian dollar is lower against a stronger greenback following improved US economic figures.
At 6.30am AEDT today, the currency was trading at 102.42 US cents, down from 102.83 US cents yesterday.
The Australian dollar weakened overnight after improved American consumer confidence and housing data lifted the US dollar.
The Conference Board's consumer confidence index hit 69.6 in the month of February, while the Commerce Department reported a 15.6 per cent increase in new home sales, the biggest increase in nearly two decades.
What happened overnight:
Europe
European stock markets have slumped as dealers assess the fallout of Italy's political impasse after elections in the indebted eurozone country.
Milan's FTSE MIB index tumbled 4.89 per cent to end the day at 16,552 points, with deadlock in Italy's parliament.
London's FTSE 100 index of leading companies fell 1.34 per cent to 6270.44 points, and Frankfurt's DAX 30 shed 2.27 per cent to 7597.11 points.
In Paris, the CAC 40 shed 2.67 per cent to 3621.92 points, as shares in European banks tumbled, while Madrid's IBEX 35 index dived 3.2 per cent to 7980.7 points on fresh fears of eurozone instability.
The price of gold, which is often seen as a haven in times of economic unrest, grew to $1590.50 an ounce from $1586.25 yesterday in New York.
US stocks open higher
US stocks have opened solidly higher in anticipation of congressional testimony by Federal Reserve Chairman Ben Bernanke.
The markets are also being buoyed by upbeat earnings results, including figures from home-improvement retailer Home Depot.
Fifteen minutes into trade, the Dow Jones Industrial Average was up 83.01 points (0.60 per cent) to 13,867.18.
The broad-based S&P 500 jumped 7.45 points (0.50 per cent) to 1495.30, while the tech-rich Nasdaq Composite Index rose 7.28 points (0.23 per cent) to 3123.53.
The gains partially offset deep losses sustained yesterday in the wake of the uncertain outcome of the Italian elections.
