Following strong leads, the Australian share market looks set for a positive open today. Wall Street ended higher yesterday, led by gains in the banking and technology sectors. Shares in Bank of America, Citigroup and JPMorgan all rose by more than 1.4%.
In the technology space, Microsoft soared more than 3%, providing the largest boost to the Nasdaq and S&P500 (despite being the biggest drag on the market the day before).
US economic news
The Census Bureau has released figures which reveal new home sales in the US rose to their highest level in 8 years. New home sales in the US rose by 16.6% to 619,000 annualised rate, which exceeded the Bureau’s forecast of 523,000. These figures indicate a stronger demand for housing, supported by low borrowing costs and steady employment gains.
Markets
Wall Street closed higher yesterday: The Dow Jones Industrial Average rose 1.2 per cent to close at 17,706, the S&P 500 gained nearly 1.4 per cent to close at 2,076 and the NASDAQ gained 2 per cent to close at 4,861.
European markets closed higher: London’s FTSE gained 1.4 per cent, Paris gained 2.5 per cent and Frankfurt was up 2.2 per cent.
Asian markets closed mixed: Tokyo’s Nikkei lost 0.9 per cent, Hong Kong’s Hang Seng gained 0.1 per cent, and China’s Shanghai Composite lost 0.8 per cent.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 23 points down to finish at 5,296. On the futures market the SPI is up 75 points.
Currencies
The Australian Dollar at 7:30AM was buying $US0.7186 cents, 49.13 Pence Sterling, 79.04 Yen and 64.52 Euro cents.
Company news
Rio Tinto Limited
(ASX:RIO) has appointed Stephen McIntosh as the acting Group executive, Technology & Innovation. Mr McIntosh will be replacing Greg Lilleyman, who will be leaving that role after 25 years of service.
Shares in Rio Tinto closed 0.45 per cent higher yesterday at $44.20.
Centrex Metals Limited
(ASX:CTX) has appointed Casale, a Swiss licensor and engineering firm, to complete a feasibility study for ammonia and nitric acid plants based at its Oxley Potassium Project in Western Australia. The company expects the feasibility study to finish by the second half of the year.
Shares in Centrex were trading steady yesterday at $0.07.
Commodities
Gold has lost $24.90 to $US1,230 an ounce for the June contract on Comex.
Silver has lost $0.18 to $16.25 for July.
Copper gained $0.01 to $2.07 a pound.
Oil has gained $1.02 to $US49.10 a barrel for June light crude in New York.
