Offshore markets rallied overnight as Chicago Federal Reserve Bank Chairman Charles Evans, stated he was in favour of more stimulus measures to generate faster job growth and boost the economy. The Australian share market looks set to follow the positive lead and open higher.
US economic news
Prices of US imports have fallen in May, the lowest it’s seen in almost two years. The Labor department showed a 1 per cent decline. The Treasury Department released its monthly budget report showing a $125 billion deficit for May.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 163 points to close at 12,574, the S&P500 is up by 15 points to close at 1,324 and the Nasdaq gained 33 points to close at 2,843.
European markets closed up: London’s FTSE gained 41 points, Paris is up by 4 and Frankfurt gained 20 points.
Asian markets closed down: Hong Kong’s Hang Seng lost 81 points, Tokyo’s Nikkei shed 88 and China’s Shanghai Composite lost 16 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 9 points up to finish at 4,073. On the futures market the SPI is 17 points up.
Currencies
The Australian Dollar at 7:15AM was buying $99.69 US cents, 64.01Pence Sterling, 79.30 Yen and 79.68 Euro cents.
Economic news
Due out today is The Westpac-Melbourne Institute Index of Consumer Sentiment.
Company news
Sundance Resources Limited (ASX:SDL) will commence an equity raising of up to $40 million. The equity raising will be offered to sophisticated and institutional buyers. The funds raised will be used to assist the early works of the port and rail areas and to also provide general working capital for the company. Separately, the iron ore explorer and developer advised it unanimously recommends shareholders vote in favour of the proposed acquisition by China's Hanlong Mining, who has proposed to acquire 100 per cent of Sundance for $0.57 per share valuing the company at about $1.7 billion. Shares in Sundance closed 5.06 per cent down yesterday at $0.375.
Leighton Holdings Limited (ASX:LEI) has finalised a new $425 million lease facility. Originally launched at $300 million, the facility was oversubscribed by 42 per cent and has a 12 month availability period with a maximum lease term of five years. Leighton says the leasing facility was important in further strengthening the group's balance sheet. Shares in Leighton closed 0.06 per cent up yesterday at $16.92.
Ex-dividends
Today: Kingsrose Mining Limited (ASX:KRM)
Tomorrow: Cellnet Group Limited (ASX:CLT)
Commodities
Gold is up $17.00 to $US1,613.80 an ounce for the August contract on Comex.
Silver is up $0.33 to $28.95 for July.
Copper is down $0.01 at $3.34 a pound.
Oil is up $0.62 at US$83.32 a barrel for July light crude in New York.
