The Australian share market looks set for a positive start to the day, after US stocks rallied on a shortened trading day, in response to positive auto sales and factory orders.
US economic news
Factory orders for May rose, the first time in three months. The Commerce department reported a 0.7 per cent increase for the month. Vehicle sales for June posted a 22 per cent gain from the year before, thanks to lower gas prices. General Motors was up 5.62 per cent and Ford increased 2.24 per cent, both beating analyst expectations.
Figures
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 72 points to close at 12,944, the S&P500 added 9 points to close at 1,374 and the Nasdaq gained 25 points to close at 2,976.
European markets closed up: London’s FTSE gained 47 points, Paris added 31 and Frankfurt was up 82 points.
Asian markets closed up: Hong Kong’s Hang Seng added 294 points, Tokyo’s Nikkei added 63 and China’s Shanghai Composite added 3 points.
The Australian share market closed lower yesterday: The S&P/ASX 200 Index closed 6 points down to finish at 4,127. On the futures market the SPI is 28 points up.
Currencies
The Australian Dollar at 7:15AM was buying $US1.029, 65.57 Pence Sterling, 82.09 Yen and 81.58 Euro cents.
Economic news
Due out today from the Australian Bureau of Statistics is retail trade figures for May, with many expecting a rise in sales.
Stocks to watch
Aurora Oil & Gas Limited (ASX:AUT) has moved closer to acquiring Eureka Energy Limited (ASX:EKA) with the oil and gas explorer now holding a 91.75 per cent stake in the company. Aurora will proceed to the compulsory acquisition of the remaining shares and says it "will will be on the same terms as the offer, (of a) cash consideration of $0.45 per Eureka share." Shares in Aurora closed 0.63 per cent up yesterday at $3.20.
Starpharma Holdings Limited (ASX:SPL, OCTQX:SPHRY) says it has made a rapid advancement with cancer drug docetaxel following preclinical results. The biotechnology company says, plans are underway for clinical trials to commence in 2013. Shares in Starpharma closed 0.36 per cent up yesterday at $1.40.
Commodities
Gold is up $24.10 to $US1,621.80 an ounce for the August contract on Comex.
Silver is up $0.78 to $28.28 for September.
Copper is up $0.07 at $3.55 a pound.
Oil is up $3.93 at US$87.68 a barrel for August light crude in New York.
