US stocks jumped sharply on Wednesday on fresh hopes of a Greek bailout with the Dow posting its biggest one day gain in over a month.
It was a broad based rally with gains in all sectors and high trading volumes. Technology stocks posted the biggest gains.
High energy demand also sent oil prices to their highest levels this year all providing a very positive lead for local stocks on the ASX.
Markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.3 per cent to close at 18,000, the S&P 500 added 1.2 per cent to close at 2,105 and the NASDAQ advanced 1.3 per cent to close at 5,077.
European markets also closed strongly higher: London’s FTSE added 1.1 per cent, Paris rose 1.8 per cent and Frankfurt surged 2.4 per cent.
Asian markets closed lower: Tokyo’s Nikkei slipped 0.3 per cent, Hong Kong’s Hang Seng dipped 1.1 per cent, and China’s Shanghai Composite shed 0.2 per cent.
The Australian share market closed slightly higher yesterday: The S&P/ASX 200 Index closed 7 points up to finish at 5,479. On the futures market the SPI is 62 points higher.
Currencies
The Australian Dollar at 7:20AM was buying 77.46 US cents, 49.90 Pence Sterling, 95.06 Yen and 68.41 Euro cents.
Economic news
Due out today from the ABS are the latest unemployment figures for May.
Company news
Woolworths Limited
(ASX:WOW) has announced a three year plan to spend over $650 million on new stores and increase staff by 2000 in Victoria. The grocer plans to open 20 new stores and refurbish 40 existing stores in the state as well as build a new meat processing plant and distribution centre. Shares in Woolworths last traded 1.18 per cent higher at $27.43.
And Downer EDI Limited
(ASX:DOW) say they have been awarded a 5 year contract with NBN. The deal is to link the NBN from main network exchanges to homes, apartment blocks and copper nodes. Work begins July 1 and is worth about $100 million for the first year of the contract. Shares in Downer ended 0.6 per cent stronger at $5.06 yesterday.
Ex-dividends One company is going ex-dividend today: Desane Group Holdings
(ASX:DGH) will pay 15 cents fully franked.
Finally to Commodities Gold has surged $9 to US$1,187 an ounce for the August contract on Comex. Silver is steady at $15.96 for July. Copper is up 3 cents at $2.75 a pound. Oil gained $1.29 to $61.43 a barrel for July light crude in New York.
