The Australian share market is likely to open in positive territory today, with Wall Street making solid gains amid renewed confidence in the Eurozone after the new Italian Government was sworn in, ending two months of political gridlock.
Figures
The Dow Jones Industrial Average gained 106 points to close at 14,819, the S&P 500 set a fresh record, gaining 11 points to close at 1,594 and the NASDAQ added 28 points to close at 3,307.
European markets also made gains: London’s FTSE added 32 points, Paris and Frankfurt are both up by 59 points.
Asian markets remained mixed: Hong Kong’s Hang Seng added 33 points, Tokyo’s Nikkei lost 42 and China’s Shanghai Composite was down by 21 points.
The Australian share market closed 0.6 per cent higher after a strong trading day lead by financial stocks. The S&P/ASX 200 index closed 28 points up to finish at 5,126.
On the futures market the SPI is 21 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.035 cents, 66.8 Pence Sterling, 101.20 Yen and 79.04 Euro cents.
Company news
Rio Tinto Limited
(ASX:RIO) is weighing up its options in relation to its diamonds assets, which may eventually be floated or sold, according to media reports. The mining giant’s chief of diamonds and minerals, Alan Davies, told media there was strong international interest in the diamonds business, amid ongoing talks with potential buyers. Rio has told shareholders it is searching for $5 billion in global savings by the end of the year and plans to sell off non-core assets. Shares in Rio dropped 0.79 per cent yesterday to close at $55.36.
Santos Limited
(ASX:STO) has committed to a $100 million drilling and appraisal program over the next 12 months in the Northern Territory. The oil and gas producer says it will target oil while also evaluating natural gas resources at the onshore Mereenie program. Santos says it will consider a further drilling program if the initial appraisals prove successful. Shares in Santos dipped 0.24 per cent to close at $12.24 yesterday.
Ex-dividend
Asian Masters Fund Limited
(ASX:AUF) will pay once cent per share unfranked
Woodside Petroleum Limited
(ASX:WPL) will pay 61.23 cents per share fully franked
Commodities
Gold is up $13.80 to $US1,467 an ounce for the June contract on Comex. Silver is up $0.36 to $24.12 for May. Copper is up $0.04 at $3.23 a pound. Oil is up $1.42 at $US94.42 a barrel for June light crude in New York.
