Outlook: Aus shares tipped for flat start

Market Reports

The Australian share market looks set for a flat start to the day, despite The Dow closing at a new all-time high on the back of positive economic data.

US economic news:
 
US home prices showed home values in the 20 largest cities rose 10.9 per cent in the year to March, the largest year-on-year increase since 2006.
 
Consumer confidence in the US surged to 76.2 in May, up from 69.0 in April - the highest level since February 2008.

Figures

The Dow Jones Industrial Average gained 106 points to close at a record 15,409, the S&P 500 added 10 points to close at 1,660 and the NASDAQ jumped 30 points to close at 3,489.
 
London’s FTSE surged 108 points, Paris gained 55 points and Frankfurt added 98 points.
 
Hong Kong’s Hang Seng added 238 points, Tokyo’s Nikkei added 169 and China’s Shanghai Composite was 28 points higher.
 
The Australian share market ended its five day losing streak, finishing 0.2 per cent stronger yesterday. The S&P/ASX 200 index closed 11 points up to finish at 4,971.
 
On the futures market the SPI is 1 point lower. 
 
Currencies

The Australian dollar has fallen after the best US consumer confidence figures in five years raised hopes the Federal Reserve will soon start winding down its economic stimulus program.
 
FNN spoke to Saxo Bank Chief Economist Steen Jackobsen who says money printing is not a sustainable strategy and will impact the dollar.
 
The Australian Dollar at 7:20AM was buying $US 96.15 cents, 63.94 Pence Sterling, 98.31 Yen and 74.79 Euro cents.
 
Economic news

Westpac-Melbourne Institute will release its Economic Activity index, the Housing Industry Association will release new home sales for April and the Australian Bureau of Statistics will release data on construction work done for the March quarter.
And companies we are expecting news from today include
 
Aristocrat Leisure Limited (ASX:ALL) which will release its first half results, Westfield Retail Trust (ASX:WRT), Westfield Holdings and Westfield America will hold its annual general meeting and Wesfarmers Limited (ASX:WES) will hold its strategy briefing day.
 
OZ Minerals Limited (ASX:OZL)  has told shareholders that its low share price has no effect on the company's higher underlying value. The copper miner's board has been grilled by investors over the plunging values of their shareholdings, including a near halving of the stock in just over three months. And shares in Oz Minerals continued their spiral finishing up 3.5 per cent down yesterday at $3.86.

BHP Billiton Limited (ASX:BHP) chief executive Andrew Mackenzie is touring  the miners’ global operations, to spread his message of reduced spending and improved productivity. Mr Mackenzie has so far visited BHP's Queensland mines and met with local Bowen Basin government community leaders to discuss the miner's productivity push, according to media reports. Shares in BHP shed 0.09 per cent yesterday to close at $33.98.
 
Commodities

Gold is down $7.70 to $US1,379 an ounce for the June contract on Comex. Silver is down $0.30 to $22.19 for July. Copper is up $0.02 at $3.32 a pound. Oil is down $0.62 at $US93.52 a barrel for July light crude in New York.
 
 

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