The Australian share market is poised to erase some of yesterday’s losses after the Dow Jones hit an all time high. It comes as US crude prices jumped 2.2 per cent, settling around $47, marking its best winning streak since 2012.
The Dow Jones gained about 130 points and the S&P rose 0.23 per cent with financials and energy of course leading the charge, while the Energy Select Sector SPDR ETF jumped 1.9 per cent.
But for the tech heavy Nasdaq, well that was less desired and closed half a per cent lower.
European markets however all closed around 1 per cent higher, while the precious metal gold, fell to a 7-week low.
US economic news
Factory activity increased in June to its highest level in almost three years, which is welcome news for the US as manufacturing accounts for about 12 per cent of overall US activity. Institute for Supply Management reported manufacturing rose to 57.8 in June from 54.9 in May. That is the best performance since August 2014. A reading above 50 indicates manufacturing is expanding
US construction spending remained unchanged in May at $1.23 trillion. The flat line growth comes as the Federal Government’s outlays on construction projects are the highest in more than 4 years.
Meantime, US auto sales have fallen for the fourth straight month.
Local economic news
The RBA Board will hold their all importantly monthly meeting – but we are not likely to see a change in interest rates.
The ABS will also give us a health check on retail trade for May.
Wall Street closed mostly mixed on Monday: The Dow Jones Industrial Average gained 0.6 per cent to close at 21,479, the S&P 500 added 0.2 per cent to close at 2,429 and the NASDAQ fell 0.5 per cent to close at 6,110.
European markets closed higher: London’s FTSE gained 0.9 per cent, Paris added 1.5 per cent and Frankfurt rose 1.2 per cent.
Asian markets closed higher: Tokyo’s Nikkei added 0.1 per cent, Hong Kong’s Hang Seng rose 0.1 per cent, and China’s Shanghai Composite lifted 0.1 per cent.?
And back home, the Australian share market closed in the red on Monday: At the closing bell, The S&P/ASX 200 Index closed 37 points lower or 0.7 per cent lower at 5,684. On the futures market the SPI is 33 points up.
Westgold Resources Limited (ASX:WGX) has completed the acquisition of one of the largest privately owned underground mining and drilling contractors in Australia, Australian Contract Mining Pty Ltd (ACM). ACM already has mining contracts in place, three of which are at Westgold’s underground mine. The Australian gold producer purchased all of the shares in ACM for a net consideration of $2.5 million in cash, plus 14 million fully paid ordinary Westgold shares. On 30 June 2017, Westgold also completed the $8.5 million purchase of the Tuckabianna gold processing facility and mining tenure from Salt Lake Resources (ASX:SLR). Shares in Westgold Resources Limited (ASX:WGX) closed 1.63 per cent lower to $1.81.
Two companies are going ex-dividend today
Collins Foods Limited (ASX:CKF) is paying 9 cents fully franked and
HGL Limited (ASX:HNG) is paying 1.25 cents fully franked.
One Australian Dollar at 7:30AM was buying 76.59 cents, 59.21 Pence Sterling, 86.86 Yen and 67.42 Euro cents.
Gold has lost $22.80 to $US1,220 an ounce.
Silver has lost 52 cents to $US16.11 an ounce.
And Oil has jumped $1.01 to $US47.05 a barrel.