Outlook: Aus shares set for another high open

Market Reports

by David Chau

Following positive leads, the Australian stock market looks set to open higher today.  Wall Street performed strongly for a second straight session yesterday with the S&P 500 up 2% -- its best two-day run since March. The energy sector led the way due to higher oil prices, and it seems investors have begun to accept that interest rates may rise as early as next month.

Markets
 
Wall Street closed higher yesterday: The Dow Jones Industrial Average rose 0.8 per cent to close at 17,852, the S&P 500 gained 0.7 per cent to close at 2,091 and the NASDAQ gained 0.7 per cent to close at 4,895.
 
European markets closed higher: London’s FTSE gained 0.7 per cent, Paris gained 1.1 per cent and Frankfurt was up 1.5 per cent.
 
Asian markets closed mixed: Tokyo’s Nikkei gained 1.6 per cent, Hong Kong’s Hang Seng gained 2.7 per cent, and China’s Shanghai Composite lost 0.2 per cent.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 77 points up to finish at 5,373. On the futures market the SPI is up 34 points. 
 
Currencies

The Australian Dollar at 7:30AM was buying $US0.7196 cents, 48.95 Pence Sterling, 79.30 Yen and 64.52 Euro cents.
 
Company news
 
Telstra Limited (ASX:TLS) has announced that it will contest a petition which has been filed against it in the Cayman Island courts.  This petition arises out of Telstra recently purchasing 47.7% of shares in Chinese online business, Autohome – to the value of $2.1 billion.
 
Shares in Telstra closed 1.79% per cent higher yesterday at $5.69.  
 
Decmil Group Limited (ASX:DCG) has been awarded a design and construct contract to build a new primary school in Auckland, New Zealand.  The project has an initial value of $15.9 million and will start immediately.
 
Shares in Decmil Group were trading steady yesterday at $0.785.  
 
Ex-dividends
 
2 companies are going ex-dividend today:

BT Investment Management Limited will pay a dividend of 18 cents, 40% franked.
Z Energy Limited will pay a dividend of 15.43 cents unfranked.
 
Commodities

Gold has lost $5.60 to $US1,227 an ounce for the June contract on Comex.
Silver has gained $0.01 to $16.26 for July.
Copper gained $0.04 to $2.10 a pound.
Oil has gained $0.31 to $US49.56 a barrel for June light crude in New York.

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