Following positive leads, the Australian share market looks set to open higher this morning. US indexes made modest gains on Friday, mostly recovering from the volatility of the prior week. Local markets will be tested over the coming days as investors digest the uncertainty left in the wake of the Australian federal election results and the outcome of the RBA’s Board Meeting tomorrow. US markets will be closed on Monday 4 July for Independence Day.
US economic news
Data in from the Institute of Supply Management has pointed to a pick up in the pace of growth for the US manufacturing sector. The index rose to 53.2 for June, up from 51.3 in May, beating market expectations of 51.4. However construction spending fell for the second straight month, down 0.8 percent in May.
Markets
Wall Street closed up on Friday: The Dow Jones Industrial Average gained 0.1 per cent to close at 17,949, the S&P 500 added 0.2 per cent to close at 2,103 and the NASDAQ rose 0.4 per cent to close at 4,863.
European markets closed up: London’s FTSE added 1.1 per cent, Paris gained 0.9 per cent and Frankfurt rose nearly 1 per cent.
Asian markets closed up: Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng gained 1.8 per cent, and China’s Shanghai Composite was up 0.1 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 13 points up to finish at 5,247. The market was up 133 points on the week. On the futures market the SPI is 32 points up.
Currencies
The Australian Dollar at 7:20AM was buying $US74.55 cents, 56.27 Pence Sterling, 76.50 Yen and 66.94 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is building permit data for May. Also due today are inflation numbers and jobs data.
Company News
99 Wuxian Limited
(ASX:NNW) has announced it will start providing its Incentive Cloud Service platform to China Resources Pharmaceutical Group. The company has also announced it has signed a contract with Da Zhong Transportation Group for its iBenefit service, an employee benefit platform.
Shares in 99 Wuxian Limited closed 8.33 per cent up on Friday at $0.130.
GUD Holdings Limited
(ASX:GUD) has announced it has completed the sale of its 51 percent stake in Sunbeam Corporation Limited and its 49 percent share of Jarden Consumer Solutions (Asia) Limited to its joint venture partner, US-based Sunbeam Products. The company received cash of approximately $35.4 million as a result of the sale.
Shares in GUD Holdings Limited closed 1.21 per cent up on Friday at $9.22.
Ex-dividends
3 companies are going ex-dividend today. Clime Capital will pay 1.2 cents fully franked, HGL will pay 1 cent fully franked and Programmed Maintenance Services will pay 5 cents, also fully franked.
Commodities
Gold has risen $18.40 to $US1,339 an ounce for the August contract on Comex.
Silver has gained $0.96 to $19.59 for September.
Copper has added $0.02 to $2.22 a pound for September.
Oil is up $0.66 to $US48.99 a barrel for August light crude in New York.
