Outlook: ASX set to rise after Fed minutes

Market Reports

The Australian share market is set to open higher despite a choppy session on Wall Street overnight. American investors digested the US Federal Reserve’s meeting minutes suggesting rates look unlikely to rise next month. The Australian dollar has since fallen and the price of iron ore has sunk for the seventh consecutive session. 
 
Global markets
 
Wall Street closed mixed on Wednesday: The Dow Jones Industrial Average slipped 0.2 per cent to close at 18,285, the S&P 500 dipped 0.1 per cent to close at 2,126 and the Nasdaq added 0.03 per cent to close at 5,072.
 
European markets also finished mixed yesterday: London's FTSE 100 gained 0.2 per cent, France's CAC 40 rose 0.3 per cent and Germany's DAX pulled back 0.04 per cent.
 
Asian markets put in a mixed performance yesterday: Japan’s Nikkei lifted 0.9 per cent, Hong Kong’s Hang Seng declined 0.4 per cent, and China’s Shanghai Composite advanced 0.7 per cent.
 
The Australian share market sank at open but recovered most losses by the afternoon: The S&P/ASX 200 index closed 5 points lower at 5,610 on Wednesday. On the futures market the SPI is 17 points higher. 
 
Currencies
 
The Australian dollar at 7:30am was buying $US0.7873, 50.7 Pence Sterling, 95.51 Yen and 71 Euro cents.
 
Company news
 
Shares in Cochlear Limited (ASX:COH) gained after the Abbott government revealed funding for 19 Australian high-value manufacturing businesses. The bionic ear maker is one of the companies who will receive between $1 million and $5 million to improve competitiveness by investing in new capital equipment and plant improvements. Cochlear plans to use grant funds to facilitate bringing back manufacturing capability on-shore for its next-generation hearing implants, and also, for projects focussing on production and assembly process enhancements. Shares in Cochlear rose to yesterday’s best performer in the S&P/ASX 200, gaining 6.6 per cent to close at $84.37. 
 
Bega Cheese Limited (ASX:BGA) has also welcomed the Federal Government’s manufacturing transition grant. The cheese maker says its $5 million grant is part of a high value dairy bio-nutrient extraction project to be installed at its manufacturing facility. Bega will now start the process of planning and development approvals and expects construction and installation to start late this year or early next year. Shares in Bega Cheese lifted 1.07 per cent to close at $4.72.
 
Commodities 
 
Gold has risen $2.00 to $US1,209 an ounce for the June contract on Comex. 
Silver has lifted $0.04 to $17.11 for July. 
Copper has dipped $0.01 to $2.83 a pound. 
Oil has gained $0.99 to $US58.98 a barrel for July light crude in New York.

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