US and European markets both finished in positive territory overnight but it may not be enough to extend yesterday’s gains on the local market as the Aussie futures index is pointing to a slow start for the ASX.
Strong retail sales data from the US has buoyed the world’s largest economy with a 1.2 per cent lift in sales in May set to support US GDP and in turn the likelihood of a rates rise from the Fed.
The iron ore price has continued its recovery overnight on dwindling stocks in China which miners hope will support the ore price. Also today we’ll get a read on lending finance from the ABS.
Global figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.2 per cent to close at 18,039, the S&P 500 added 0.2 per cent to close at 2,109 and the NASDAQ is up 0.1 per cent to close at 5,083.
European markets closed higher: London’s FTSE is up 0.2 per cent, Paris gained 0.7 per cent and Frankfurt pushed 0.6 per cent higher.
Asian markets also gained: Tokyo’s Nikkei added 1.7 per cent, Hong Kong’s Hang Seng is up 0.8 per cent, and China’s Shanghai Composite is 0.3 per cent higher.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 78 points up to finish at 5,557. On the futures market the SPI is 8 points down.
Turning to currencies and the Australian Dollar at 7:20AM was buying $US0.7757 cents, 50 Pence Sterling, 95.76 Yen and 68.93 Euro cents.
Company news
Medical imaging company Capitol Health Limited
(ASX:CAJ) says its completed the acquisition of Sydney Radiology which will begin operations under Capitol as of the 11 June. The move sees Capitol make further inroads into NSW with the purchases funded from existing debt facilities. Shares in Capitol closed flat at $0.85
Atlas Iron Limited
(ASX:AGO) will return David Flanagan as Managing Director to replace Ken Brinsden who will become executive director. The iron ore explorer says the change will take effect immediately and hope to drive the company’s business improvement initiatives after a recent restructure. The role of Chairmen will be filled by Cheryl Edwardes who is a lawyer and the WA Attorney General. Atlas Iron last traded at $0.12.
Ex-dividends 1 company is going ex-dividend today Otto Energy Limited
(ASX:OEL) is paying 76c unfranked.
Commodities
Gold has lost $6.20 to $US1,180 an ounce for the August contract on Comex. Silver has gained $0.04 to $15.96 for July. Copper has lost $0.08 to $2.67 a pound. Oil has dropped $0.66 to $US60.77 a barrel for July light crude in New York.
