The Australian share market looks set to open stronger after receiving positive offshore leads. US, European and Asian stocks gained as investors await a confidence vote for the Greek government, opening up the chance for a package of reforms to aid the country’s debt situation.
US economic news
The National Association of Realtors reported that existing home sales in May dropped 3.8 per cent to an annualized rate of 4.81 million, from a rate of 5 million the month before. The result was better than analysts had expected.
Figures
On Tuesday, the Dow Jones Industrial Average advanced 110 points to close at 12,190, the S&P500 added 17 points to close at 1,296 and the NASDAQ gained 58 points to close at 2,687.
European stocks closed higher: London’s FTSE up 82 points, Paris up 77 and Frankfurt was up 135 points.
To Asian markets, stocks were also higher: Hong Kong’s Hang Seng was up 251, Tokyo Nikkei was up 105 and China’s Shanghai Composite was up 25.
The Australian share market finished 1.3 per cent stronger on Tuesday: The S&P/ASX 200 Index rose 57 points to close at 4,508. On the futures market the SPI is 34 points higher.
Currencies
The Australian Dollar at 7:35AM was buying $1.0601 US cents, 65.28 Pence Sterling, 85.07 Yen and 73.61 Euro cents.
Australian economic news
Due out today is the Westpac and Melbourne Institute leading index of economic activity for June.
Company news
On Tuesday shares in Macquarie Group Ltd (ASX:MQG) finished 1.54 per cent higher at $31.61. Australia's biggest investment bank will next month ask its shareholders to vote on planned changes to its CEO’s bonus allocation and for base salaries. Macquarie yesterday gave notice of its annual general meeting, to be held on 28 July, conceding that over the past year it has faced some remuneration challenges. For the year ended on 31 March 2011, Macquarie Group reported a $989 million net profit.
Yesterday shares in Charter Hall Group (ASX:CHC) rose 4.39 per cent to close at $2.14. Charter Hall Group has boosted its stake in Charter Hall Office REIT (ASX:CQO) to 13.3 per cent. The company will pay around $35 million for an additional 3.3 per cent interest from US hedge fund Fir Tree Capital. In the first six months of its 2011 financial year, Charter Hall Group recorded a net profit of $49.1 million.
Ex-dividends
The only company going ex-dividend today is Count Financial with a $0.02 fully franked dividend. Among those coming up later this week are Ardent Leisure, APA Group and Aspen Group.
Commodities
Gold is up $4.40 to $US1,546 an ounce for the August contract on Comex, silver is up $0.31 to $36.38 for July and copper is up $0.02 at $4.09 a pound. Oil is up $0.14 at $93.40 a barrel for July light crude in New York.
