The Australian share market looks set to make small gains at the open, after Wall Street extended its rally hitting fresh records on positive economic data from Germany and China.
Figures
The Dow Jones Industrial Average gained 49 points holding above 15,000 to close at 15,105, the S&P 500 added 7 points to close at 1,633 and the NASDAQ gained 17 points to close at 3,413.
London’s FTSE added 26 points, Paris gained 35 points and Frankfurt closed 68 points higher with investors buoyed by solid German production data.
Hong Kong’s Hang Seng added 197 points, Tokyo’s Nikkei gained 105 and China’s Shanghai Composite closed 11 points higher.
The Australian share market rallied to finish 1.1 per cent stronger yesterday, with blue chip mining stocks posting strong gains on positive Chinese trade data. The S&P/ASX 200 index closed 56 points up to finish at 5,200.
On the futures market the SPI is 13 points higher.
Currencies
The Australian Dollar at 7:20AM was buying $US1.017 cents, 65.5 Pence Sterling, 100.69 Yen and 77.34 Euro cents.
Economic news
The market will be closely watching the Australian Bureau of Statistics’ labour force data for April today. The unemployment rate is expected to have remained steady in April at 5.6 per cent, although is likely to rise over the next six months.
Company news
BHP Billiton Limited
(ASX:BHP) says iron ore prices may drop as supply exceeds demand over the long term, according to media reports. The mining giant’s general manager of iron ore marketing Alan Chirgwin reportedly told an industry conference in Singapore that significant low-cost supply, mainly from Australia and Brazil, will eventually meet and exceed Chinese demand. Iron ore has lost 10 per cent this year, amid forecasts for an increase in global supplies as demand growth lessens in China. Shares in BHP closed 1.87 per cent higher yesterday at $34.30.
Australia and New Zealand Banking Group
(ASX:ANZ) deputy chief Graham Hodges says there’s no bank stocks bubble, according to media reports. While shares in banks have rallied, Mr Hodges has told media the robust share growth is justified by strong bank profits. The comments come ahead of National Australia Bank Limited
(ASX:NAB) first half results due out this morning. Shares in ANZ closed up 0.87 per cent yesterday at $31.46.
Ex-dividend
Australia and New Zealand Banking Group
(ASX:ANZ) will pay 73 cents per share fully franked
United Overseas Australia Limited
(ASX:UOS) will pay 2 cents per share unfranked
Commodities
Gold is up $24.90 to $US1,474 an ounce for the June contract on Comex. Silver is up $0.12 to $23.93 for July. Copper is up $0.07 at $3.37 a pound. Oil is up $1.00 at $US96.62 a barrel for June light crude in New York.
