The Australian share market looks set to begin the trading day moderately higher after Wall Street finished a volatile session stronger on the release of surprisingly positive jobless claims data.
US economic news
New claims for US unemployment benefits fell last week to the lowest level since mid-March. Initial claims came in at 339,000, down from the prior week's revised reading of 362,000.
Figures
The Dow Jones Industrial Average gained 25 points to close at 14,701, the S&P 500 added 6 points to close at 1,585 and the NASDAQ jumped 20 points to close at 3,290.
European markets were mixed: London’s FTSE gained 11 points, Paris lost 2 points and Frankfurt was 74 points higher.
Asian markets were also mixed: Hong Kong’s Hang Seng added 218 points, Tokyo’s Nikkei added 83 and China’s Shanghai Composite lost 19 points.
The Australian share market rallied across all major sectors on Wednesday, with the market enjoying its biggest daily rise since Mid-March. The S&P/ASX 200 index closed 86 points up to finish at 5,102.
On the futures market the SPI is 12 points up.
Currencies
The Australian Dollar at 7:20AM was buying $US1.029 cents, 66.73 Pence Sterling, 102.26 Yen and 79.16 Euro cents.
Company news
BHP Billiton Limited
(ASX:BHP) has completed its second long-term European bond offering in seven months. The mining giant bypassed the local market to borrow €750 million at an interest rate of 3.125 per cent over a 20-year term.The Australian government's 15-year bond is priced at 3.53 per cent, so BHP has secured a cheaper interest rate despite the risk associated with lending over a longer period. Shares in BHP closed up 1.08 per cent on Wednesday at $31.70.
QBE’s Insurance Group Limited
(ASX:QBE) mortgage insurance arm was battered by a spike in claims last year, amid weakening economic conditions and rising home loan defaults. In accounts filed with the corporate regulator, the insurance company revealed payouts more than doubled to $60.8 million last year, up from $27.6 million in 2011. But QBE said its ratio of losses was much lower than during previous economic downturns, and the number of defaults had eased as interest rates lowered towards the end of the year. Shares in QBE closed 1.22 per cent higher on Wednesday at $13.26.
Commodities
Gold is up $38.30 to $US1,462 an ounce for the June contract on Comex. Silver is up $1.30 to $24.14 for May. Copper is up $0.08 at $3.24 a pound. Oil is up $2.21 at $US93.64 a barrel for June light crude in New York.
