The Australian share market is set to open slightly higher after global markets rallied on hopes the US Federal Reserve will continue its stimulus program.
The expectation that US Fed Chairman Ben Bernanke will stand by the commitment to supporting the US economy, saw the greenback strengthen and the Australian dollar slide by about half a cent overnight. At 7:20AM the Aussie was buying $US95.49 cents, 60.77 Pence Sterling, 90.31 Yen and 71.47 Euro cents.
Figures
Wall Street was in positive territory: The Dow Jones Industrial Average gained 110 points to close at 15,180, the S&P 500 added 12 points to close at 1,639 and the NASDAQ was 29 points higher to close at 3,452.
European markets followed suit: London’s FTSE added 22 points, Paris lifted by 59 points and Frankfurt gained 88 points.
Asian markets mostly soared: Tokyo’s Nikkei surged by 347 points, Hong Kong’s Hang Seng added 257 points, but China’s Shanghai Composite lost 5 points.
The Australian share market moved into positive territory to close 0.7 per cent higher on the back of a rally in financials. The S&P/ASX 200 index closed 34 points up to finish at 4,826.
On the futures market the SPI is 11 points higher.
Economic news
The RBA will release the minutes of its monthly board meeting although it’s unlikely to impact the market or the dollar.
Company news
Lend Lease Group
(ASX:LLC) shares slumped to their lowest point in seven months on news it will overhaul its Australian construction businesses. Lend Lease says it will consolidate Abigroup, Baulderstone, Project Management as well as its Construction and Infrastructure Services businesses. Shares in Lend Lease plummeted 7.49 per cent yesterday to close at $8.65.
Kathmandu’s Holdings Limited
(ASX:KMD) boss is back at work after two-and-a-half months off to recover from a severe infection. Peter Halkett was granted extended leave from his role in early April due to an infection he suffered after undergoing a routine medical procedure in late March. Shares in Kathmandu closed down 1.82 per cent yesterday at $2.16.
Commodities
Gold is down $4.50 to $US1,383 an ounce for the August contract on Comex. Silver is down $0.19 to $21.76 for July. Copper is flat at $3.20 a pound. Oil hit a nine-month high overnight as traders worried the Syria crisis could hit supplies from the Middle East, but light crude is now down $0.08 to $US97.77 a barrel.
