Global markets rally: ASX to nudge higher

Market Reports

by Jessica Amir

US technology stocks have recovered, jumping over 1 per cent on Monday, which left the Dow Jones and S&P 500 sitting at fresh record highs. Because of that we can expect the Australian share market to nudge higher at the open.

The Dow rose about 140 points, surpassing the all-time high set last week. On the S&P 500, no surprises there, tech stocks led the advance, following their somewhat tumultuous session last week.

Amazon shares hit an all-time high, with the likes of Facebook, Apple, Netflix and owner of Google, Alphabet, all closing higher as well, which contributed to the Nasdaq’s gain of over 1.4 per cent.

In Europe, markets there also soared as Brexit talks get underway.

Gold meantime, has hit a 4-week low amid the global stock market rally, while US Crude Oil has fallen 1 per cent, dropping to a 7-month low on the back of supply concerns.

Local economic news

The RBA board minutes will be released from its June 6 2017 meeting, with all eyes on comments about on the job market, housing and The Federal Budget.

The ABS will reveal March’s Residential property prices. Although somewhat dated, the data includes estimates of the number of homes and the average number of people per home.

Markets

Wall Street closed higher on Monday: The Dow Jones Industrial Average surged 0.7 per cent to close at 21,529, the S&P 500 added 0.8 per cent to close at 2,453 and the NASDAQ shone advancing 1.4 per cent to close at 6,239

European markets also closed higher: London’s FTSE advanced 0.8 per cent, Paris added 0.9 per cent and Frankfurt rallied 1.1 per cent.

Asian markets also closed higher as well: Tokyo’s Nikkei added 0.6 per cent, Hong Kong’s Hang Seng rose 1.2 per cent, and China’s Shanghai Composite advanced 0.7 per cent.

And back home, the Australian share market closed higher on Monday. At the closing bell, The S&P/ASX 200 Index closed 31 points higher or 0.5 per cent to finish above the 5,800 point mark [at 5,805]. On the futures market the SPI is 8 points up.

Company news

SMS Management and Technology Limited (ASX:SMX) has confirmed it intends to accept and execute ASG Group Limited’s takeover offer of $1.80 cash per share. Once the advisory and recruitment company executes ASG’s Scheme Implementation Agreement (SIA) it will make a further announcement. It comes as DWS Limited (ASX:DWS) also announced it would not make a Counter Proposal, and as a result SMS will now terminate DWS’ Scheme Implementation Agreement for its proposed takeover. Shares in SMS Management and Technology Limited (ASX:SMX) last traded at $1.85

Currencies

The Australian Dollar at 7:30AM was buying 76.01 US cents, 59.68 Pence Sterling, 84.78 Yen and 68.17 Euro cents.

Commodities

Gold has lost $11.30 to $US1,245 an ounce.
Silver has dropped by 20 cents to $US16.46 an ounce.
And Oil has fallen 64 cents to $US44.33 a barrel.
 

Jessica Amir

Finance News Network
Jessica presents the Market Outlook and company news. She joined FNN in January 2017. She has been in broadcast journalism for over five years. She has worked as a journalist with Sky News Business, ABC 1 and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She is also a qualified financial planner and a Masters of Applied Finance student.