The Australian share market looks set for another day of gains, after US stocks pushed higher as investor fears subsided over the Federal Reserve cutting back its stimulus program.
Moderately positive economic data helped the market to extend gains as the session wore on.
The data suggested US economic growth is moving at a moderate pace with consumer spending rebounding in May from April's fall, incomes climbing higher, inflation pressures low, new jobless claims slightly improved, and pending home sales strong.
Figures
Wall Street was in positive territory: The Dow Jones Industrial Average lifted 114 points to close at 15,024, the S&P 500 added 10 points to close at 1,613 and the NASDAQ gained 26 points to close at 3,402.
European markets followed suit: London’s FTSE was 78 points higher, Paris lifted by 36 points and Frankfurt added 50 points.
Asian markets were mostly higher: Tokyo’s Nikkei added 380 points as concerns over China receded, Hong Kong’s Hang Seng gained 102 points, and China’s Shanghai Composite lost 1 point.
The Australian share market closed 1.7 per cent higher yesterday after rallying strongly for a second consecutive day. The S&P/ASX 200 index lifted 80 points to finish at 4,811.
On the futures market the SPI is 22 points up.
Currencies
The Australian Dollar at 7:15AM was buying $US92.78 cents, 60.84 Pence Sterling, 91.30 Yen and 71.19 Euro cents.
Economic news
The RBA will today release its private sector credit data for May
Company news
Graincorp Limited
(ASX:GNC) has been assured it will attract an additional $300 million in investment, after the ACCC approved the $3billion takeover by US agricultural giant Archer Daniels Midland. ADM chief executive Patricia Woertz has pledged to invest in GrainCorp, not cut costs as the deal jumped a regulatory hurdle. But the transaction still hinges on the Foreign Investment Review Board’s go-ahead. Shares in Graincorp were flat yesterday, to close at $12.54.
Suncorp Group Limited
(ASX:SUN) will overhaul the computer and sales systems behind its life and general insurance businesses, after it discovered promised discounts were not being passed on to some customers. ASIC has recommended Suncorp refund customers impacted by the system breaches to the tune of $23 million. Shares in Suncorp lifted 1.26 per cent yesterday to close at $12.02.
Ex-dividend Metcash Limited
(ASX:MTS) will pay 16.5 cents fully franked.
Commodities
Gold is down $18.20 to $US1,212 an ounce for the August contract on Comex. Silver is down $0.05 to $18.53 for July. Copper is up $0.01 at $3.05 a pound. Oil prices rose sharply overnight on the back of upbeat United States' economic data and easing concerns over China's liquidity crisis. Light crude is up $1.55 at $US97.05 a barrel for August light crude in New York.
