The Australian share market is set to open stronger thanks to positive offshore leads. Hopes for a major budget deal in Washington and reports that European leaders have agreed on a debt bailout for Greece lifted international markets.
US economic news
Jobless claims rose by 10,000 to 418,000 last week. A level below 400,000 is typically associated with payroll growth.
European economic news
Euro zone leaders have agreed the private sector will provide 37 billion euros towards a second bailout package for Greece. The total bailout package will be around 109 billion euros.
Figures
On Thursday, the Dow Jones Industrial Average was up 153 points to close at 12,724, the S&P500 rose 18 points to close at 1,344 and the NASDAQ gained 20 points to close at 2,834.
European stocks were higher: London’s FTSE up 46 points, Paris gained 62, and Frankfurt rose 69 points.
To Asian markets and stocks were mixed: Hong Kong’s Hang Seng is fell 16, Tokyo’s Nikkei rose 4 points and China’s Shanghai Composite lost 28.
The Australian share market closed marginally higher on Thursday: The S&P/ASX 200 Index finished the day 6 points firmer at 4,556. On the futures market the SPI is 45 points stronger.
Currencies
The Australian Dollar at 7:40AM was buying $1.0845 US cents, 66.51 Pence Sterling, 85.09 Yen and 75.22 Euro cents.
Australian economic news
Due out today the Australian Bureau of Statistics will release its June international trade price index.
Company news
Yesterday shares in National Australia Bank Ltd (ASX:NAB) ended the day up 1.28 per cent at $24.60. NAB chief Cameron Clyne has advised against aggressive Asian expansion plans for Australian banks according to a report by the Australian Financial Review. Mr Clyne says that competition from global banks is already strong and threatening to saturate Asia’s banking sector. He added that basing overseas expansion plans on a strong Australian dollar was speculative and should be almost the last criteria for deciding to enter the market. For the half year ended March 31 this year, NAB posted a net profit of $2.4 billion.
On Thursday shares in Telstra Corporation Ltd (ASX:TLS) ended the day flat at $3.06. The telco has announced 300 jobs will be outsourced to India according to a report by The Australian. It’s reported that Telstra has ended a nine month search and the tender has been given to Tata Consulting Services and IBM India. It’s understood that mainly administrative duties will be outsourced. In the first half of its 2011 financial year, Telstra recorded a net profit of $1.2 billion.
Ex-dividends
There aren’t any companies going ex-divided today, but on Monday Countplus Ltd is coming up with a fully franked dividend of $0.02.
Commodities
Gold is down $9.90 to $US1,587 an ounce for the August contract on Comex, silver has fallen $0.61 to $38.95 for September and copper is down $0.05 at $4.38 a pound. Oil has risen $0.73 to $99.13 a barrel for August light crude in New York.
