The Australian share market looks set for a bright start to the day with local stocks poised to lift after Wall Street rose on hopes the US Federal Reserve may soon reveal more economic stimulus measures. European stocks also gained, as Greece progressed towards forming a new government, despite Spain’s borrowing costs fuelling concern the nation will need a bailout.
Wall Street rallied on Tuesday: The Dow Jones Industrial Average rose 96 points to close at 12,837, the S&P500 added 13 points to close at 1,358 and the Nasdaq lifted 34 points to close at 2,930.
European markets also shot up on Tuesday: London’s FTSE gained 95, yesterday Paris gained 52 and Frankfurt gained 115.
Asian markets closed lower yesterday: Hong Kong’s Hang Seng lost 11 points, Tokyo’s Nikkei lost 65 and China’s Shanghai Composite lost 15 points.
The Australian share market pulled back from a strong start to the week yesterday, dipping 0.3 per cent. On Tuesday the S&P/ASX 200 index lost 14 points and to close at 4,123. On the futures market the SPI is now 26 points higher.
The Australian Dollar at 7:20AM was buying $US1.019 cents, 64.83 Pence Sterling, 80.47 Yen and 80.34 Euro cents.
Economic news out today
Australian Bureau of Statistics: Dwelling unit commencements for March quarter and international merchandise imports for May
Commonwealth Bank of Australia (ASX:CBA): Business sales indicator for April
Westpac Banking Corporation (ASX:WBC)-Melbourne Institute: Leading indexes of economic activity
Stocks to watch
News Corp’s (ASX:NWS) Australian arm News Limited is reportedly gearing up to reveal new acquisitions as soon as today. According to a News Limited report published today the company is set to announce the purchase of Australian based business website Business Spectator and newsletter Eureka Report for more than $22 million. A separate report from Fairfax says News Limited is also moving in on a deal to buy James Packer’s 50 per cent interest in Consolidated Media Holdings Limited (ASX:CMJ). Shares in News Corp slipped 0.89 per cent yesterday to finish at $20.04.
Rio Tinto Limited (ASX:RIO) has announced it will inject $654 million into a copper mine in the US to extend its life by 11 years. The global miner says the investment into the Kennecott Utah Copper Bingham Canyon will secure low cost copper, gold and molybdenum production for the next two decades. Shares in Rio Tinto dipped 0.4 per cent yesterday, closing at $56.77.
Dicker Data Limited (ASX:DDR) with a 1.5 cent fully franked dividend
Gold is down $3.80 to $US1,623 an ounce for the August contract on Comex.
Silver is down $0.30 to $28.37 for July.
Copper is up $0.03 at $3.43 a pound.
Oil is up $0.71 at $84.03 a barrel for July light crude in New York.