The Australian share market looks set to open higher for a second day after US stocks rose on slower-than-expected economic growth.
US economic news
The US Government cut its estimate for growth in the first quarter to just 1.8 per cent. That was down significantly on the previous estimate of 2.4 per cent.
Investors took that as a signal that the Federal Reserve might be less inclined to pull back on its economic stimulus this year.
Figures
Wall Street had a solid trading day: The Dow Jones Industrial Average gained 150 points to close at 14,910, the S&P 500 added 15 points to close at 1,603 and the NASDAQ jumped 28 points to close at 3,376.
European markets followed suit and pushed higher: London’s FTSE lifted 64 points, Paris added 76 points and Frankfurt gained 130 points.
Asian markets were mixed with Chinese financial markets calmed by the central bank's pledge to prevent any lasting credit crunch: Tokyo’s Nikkei shed 135 points, Hong Kong’s Hang Seng soared by 483 points .That was its best day in nearly six months as investors hunted for bargains after recent market turmoil, with China’s banking sector rebounding from big hits by those credit crunch fears on the mainland. And China’s Shanghai Composite added 1 point.
The Australian share market has finished sharply higher yesterday, gaining 1.6 per cent following a broad based rally that added $23 billion to the market. The S&P/ASX 200 index closed 76 points up to finish at 4,732.
On the futures market the SPI is 20 points higher.
Currencies
The Australian Dollar at 7:25AM was buying $US92.84 cents, 60.62 Pence Sterling, 90.87 Yen and 71.37 Euro cents.
Economic news
The Australian Bureau of Statistics will release its job vacancies data for May.
Company news
Downer EDI Limited
(ASX:DOW) will cut 185 jobs from its workforce at the Goonyella Riverside coal mine in central Queensland. The job cuts, which represent more than a quarter of the mine’s workforce, will begin from July 1 at the coking coal mine, which is owned and operated by the BHP Billiton Mitsubishi Alliance. Shares in Downer EDI lifted 2.94 per cent yesterday to close at $3.50.
iiNet Limited
(ASX:IIN) is part of a telco alliance demanding the federal government and competition watchdog review Telstra's sector dominance to boost competition in the market. iiNet boss Michael Malone says the cost of wholesale access to Telstra's network for competitors is disadvantaging consumers. The Competitive Carriers' Coalition represents iiNet, Vodafone Australia, Macquarie Telecom, AAPT, Adam Internet and Nextgen. Shares in iiNet lifted 5.73 per cent yesterday to close at $5.90.
Ex-dividend
Dicker Data Limited
(ASX:DDR) will pay 1.25 cents per share fully franked.
Joyce Corporation Limited
(ASX:JYC) will pay 1 cent per share unfranked.
Commodities
Spot gold plummeted to its lowest level in nearly 3 years overnight, down $45.30 to $US1,230 an ounce for the August contract on Comex – it’s now on track for the biggest quarterly loss on record. Silver is down $0.94 to $18.59 for July. Copper is down $0.03 at $3.04 a pound. Oil is up $0.18 at $US95.50 a barrel for August light crude in New York.
