Positivity is flowing from Wall Street where a record close on the S&P 500 should help the local bourse recover some of yesterday’s losses.
US equities were supported by jobless claims growing at a slower rate than was anticipated but with low inflation and a relatively weak US dollar there was little consequent pressure on a rate hike which pleased the market.
The Aussie dollar weakened on signs of strength from the US.
Global figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 1 per cent to close at 18,252, the S&P 500 added 1.08 per cent to close at 2,121 and the NASDAQ is up 1.4 per cent to close at 5,051.
European markets closed up: London’s FTSE gained 0.3 per cent, Paris is up 1.4 per cent and Frankfurt pushed 1.8 per cent higher.
Asian markets closed mixed: Tokyo’s Nikkei lost just below 1 per cent, Hong Kong’s Hang Seng is up 0.1 per cent, and China’s Shanghai Composite gained 0.06 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 19 points down to finish at 5,697. On the futures market the SPI is 36 points up.
Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.8085 cents, 51.24 Pence Sterling, 96.37 Yen and 70.85 Euro cents.
In economic news today we’ll see Australian lending finance from the ABS.
Company news
WAM Capital Limited
(ASX:WAM) has appointed Chris Stott as non-executive director with the company hoping to leverage his extensive experience. The investment company says Mr Stott has demonstrated his credentials with his work as a fund manager at Wilson Asset Management. Chris will stand for election by shareholders at the company’s AGM. Shares in WAM closed 0.78 per cent lower yesterday at $1.905
Metcash Limited
(ASX:MTS) is looking into the potential demerger of its automotive division which includes Autobarn, Autopro, ABS and Midas. The wholesale and distribution company says the division’s revenue in the year to April was around $250 million with a potential IPO creating a separate listed entity. The company will provide an update along with its full year results on the 15th June. Shares in Metcash closed 1.53 per cent lower yesterday at $1.285
Ex-dividend National Aust. Bank
(ASX:NAB) is paying 99c, fully franked.
Commodities
Gold has gained $7.00 to $US1,225 an ounce for the June contract on Comex.
Silver is up $0.25 to $17.46 for July.
Copper has lost $0.01 to $2.92 a pound.
Oil has given up $0.62 to $US59.88 a barrel for June light crude in New York.
