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Australia shares seen recovering on Fed's easing commitment
March 20, 2013 / 9:48 PM / 5 years ago

Australia shares seen recovering on Fed's easing commitment

SYDNEY, March 21 (Reuters) - Australian shares are set to
rebound from three days of losses on Thursday, after the Federal
Reserve reaffirmed its commitment to easing policy, but
sentiment will remain cautious on Cyprus and uncertain demand in
China.  
    
    * Local share price index futures was up 0.4
percent at 4,984.0, a 16.6-point premium to the underlying
S&P/ASX 200 index close. The benchmark fell 0.4 percent
on Wednesday. 
    * New Zealand's benchmark NZX 50 index inched up 0.1
percent to 4,355.7 in early trade.
    * The Federal Reserve on Wednesday pressed forward with its
aggressive efforts to stimulate the U.S. economy, saying it
would take into account risks posed by its policies but also how
much work still needs to be done to lower unemployment.
 
    * U.S. stocks climbed on Wednesday, with the S&P 500
snapping a three-day losing streak as the Federal Reserve
reassured investors that it would keep supporting the economy. 
    * Iron ore prices could fall to around $90 a tonne by 2018
from an average of $128 in 2012, as a result of moderating
demand in China and substantial supply increases, Australia's
Bureau of Resources and Energy Economics said on Wednesday. 
  
    * Copper rebounded on Wednesday from seven-month lows as
some investors went bargain hunting and others closed out short
positions, but gains were capped by worries about Cyprus and
uncertain demand in China.      
    * Australia's Sundance Resources Ltd said on
Wednesday it is not confident suitor Hanlong Mining will meet a
deadline to prove financing for its $1.4 billion takeover bid
after the apparent detention of the Chinese company's chairman.
 
    * Agribusiness company Elders Ltd said on Wednesday
it is in talks with a number of parties about the sale of its
rural services business, responding to an announcement from
Australia's competition watchdog that it was reviewing a
proposal from Ruralco Holdings Ltd. 
   
----------------------MARKET SNAPSHOT @ 2123 GMT ------------
                    INSTRUMENT   LAST       PCT CHG   NET CHG
S&P 500                   1558.71      0.67%    10.370
USD/JPY                   96.01          -0%     0.000
10-YR US TSY YLD     1.9581          --     0.054
SPOT GOLD                 1605.7      -0.44%    -7.090
US CRUDE                  92.96        0.87%     0.800
DOW JONES                 14511.73     0.39%     55.91
ASIA ADRS                136.65       1.00%      1.35
-------------------------------------------------------------   
                                                        
        
  * Wall St gains as Fed leaves stimulus in place           
  * Brent oil rises as Cyprus concern eases                
  * Gold slips after Fed maintains policy, euro rises     
  * Copper and aluminium bounce; Cyprus crimps gains     
    
    For a digest of the day's business stories in Australian 
newspapers, double click on    
        
 (Australia/New Zealand bureaux; +61 2 9373 1800/+64 4 471 
4234)
        

 (Reporting By Maggie Lu Yueyang)

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