Outlook: Aus shares set to open higher

Market Reports

The Australian share market looks set to rise this morning following an improvement in global markets overnight, after world leaders pledged their support for economic growth in the euro zone.

Figures

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 135 points to close at 12,504, the S&P500 is up by 21 points to close at 1,316 and the Nasdaq gained 68 points to close at 2,847.

European markets closed up: London’s FTSE gained 37 points, Paris is up by 19 points and Frankfurt gained 60 points.

Asian markets closed mixed: Hong Kong’s Hang Seng lost 30 points, Tokyo’s Nikkei added 23 and China’s Shanghai Composite added 4 points.

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 27 points up to finish at 4,074. On the futures market the SPI is currently 33 points higher .

Currencies

The Australian Dollar at 7:15AM was buying 99.18 US cents, 62.64 Pence Sterling, 78.66 Yen and 77.38 Euro cents.

Stocks to watch this morning

Suncorp Group Limited (ASX:SUN) will issue a covered bond in the next few weeks in an effort to diversify its funding sources and to increase its retail banking market share. Under current legislation, the bank can issue covered bonds worth up to 8 per cent of their net assets, which could see it raise up to $5 billion. The regional bank’s core divisions are focused in retail banking, mortgages and small business lending. Australia’s four major banks have issued about $30 billion worth of debt in the last six months. Shares in Suncorp closed 0.26 per cent down yesterday at $7.72.

In a revised bidders statement, DuluxGroup Limited (ASX:DLX) has advised its takeover offer for garage door maker Alesco Corporation Limited (ASX:ALS) will expire at the end of next month. The paint maker’s $188 million offer is designed to expand its reach in the home renovation market. Dulux has already acquired almost 20 per cent in Alesco. Shares in Dulux Group closed 3.02 per cent down yesterday at $2.89.
 
Commodities

Gold is down $3.20 to $US1,588.70 an ounce for the June contract on Comex. Silver is down $0.394 cents to $28.32 for July. Copper is up $0.034 cents at $3.50 a pound. Oil is up $1.09 at US$92.57 a barrel for June light crude in New York.