Welcome to Tuesday Fools and RBA decision day. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened more than 1% higher as Wall Street soared on Friday.In the US, the Dow Jones and the broader S&P 500 both rose 0.3% while the tech-heavy NASDAQ recorded a slightly lower 0.2% gain.Oil prices were flat, with Brent Crude Oil at US$66.45 per barrel while WTI Crude was down just 0.1% at US$58.87 per barrel. (WTI stands for West Texas Intermediate and is the benchmark oil price in the US while the Brent crude oil price is more widely used in Europe.)
The Australian dollar has dropped heavily against the US dollar again and is currently buying 78.2 US cents.
- Australia and New Zealand Banking Group (ASX: ANZ) has shrugged off Westpac Banking Corp's (ASX: WBC) disappointing half-year result yesterday, to post an interim $3.7 billion cash profit and beat analyst expectations.
The bank increased its dividend by 4% to 86 cents, fully franked.That news may well see the big four banks ANZ, Commonwealth Bank of Australia (ASX: CBA), National Australia Bank (ASX: NAB) and Westpac Banking Corp (ASX: WBC) soar today.
- Iron ore has risen 2.4% to US$57.55 a tonne overnight, after Brazilian giant Vale suggested it may slow production growth by as much as 30 million tonnes a year, in an effort to drive the iron ore price up.
BHP Billiton Limited (ASX: BHP) has already taken similar steps, which spurred a rise in the commodity price.
- Tweet of the Day
Always wonder what the ethical funds think when they watch a show like 4 corners last night. Do they ask questions or turn a blind eye ?
Peter Morgan (@psimpsonmorgan) May 4, 2015
If you didn't see the show last night, it was about Australia's fruit and vegetable industry underpaying and mistreating migrant workers. You can watch it here – but it has major implications for the supermarket retailers Coles – owned by Wesfarmers Ltd (ASX: WES), Woolworths Limited (ASX: WOW), Aldi, IGA and Metcash Limited (ASX: MTS). It may also make you question whether 'buying Australian' is really good, and as Peter notes, what do Ethical Funds do if they hold any of those stocks? - Stock of the Day – brought to you by Matt Brazier – Caltex Australia Limited (ASX: CTX). Up 64% over the past year, is it still a buy? Find out here.
