The Australian share market is set to continue its winning streak today after global stocks rallied on the US Federal Reserve’s intention to maintain its massive stimulus program.
While the minutes from the latest Fed policy meeting show more than half of committee members want to begin tapering stimulus spending by the end of the year, Fed Chairman Ben Bernanke says he’s in no rush to begin pulling back on stimulus spending and that the economy still needs highly accommodative monetary policy for the foreseeable future.
Figures
Those comments from Mr Bernanke put the Dow Jones on target for a new all-time high as Wall Street made big gains: The Dow Jones Industrial Average surged 169 points to close at 15,461, the S&P 500 jumped 22 points to close at 1,675 and the NASDAQ rose by 58 points to close at 3,578.
European markets were also in positive territory: London’s FTSE gained 38 points, Paris added 28 points and Frankfurt was up by 92 points.
Asian markets followed suit: Tokyo’s Nikkei lifted by 56 points, Hong Kong’s Hang Seng soared by 533 points, and China’s Shanghai Composite rose by 65 points.
The Australian share market surged yesterday following reassurances America’s economic stimulus is set to continue for now. The S&P/ASX 200 index gained 64 points yesterday to close the session at 4,966.
On the futures market the SPI is 37 points higher.
Currencies
The Australian Dollar at 7:10AM was buying $US91.91 cents, 60.55 Pence Sterling, 90.98 Yen and 70.18 Euro cents.
Economic news
The Australian Bureau of Statistics will release its housing finance data for May
Company news
Santos Limited
(ASX:STO) is the target of fresh takeover talk after a spike in the gas company’s share price, according to media reports. It’s been reported that Chevron or ExxonMobil may be interested in Santos as both companies seek to expand their presence in Australia's gas sector. Shares in Santos lifted 0.29 per cent yesterday to close at $13.97.
National Australia Bank Limited
(ASX:NAB) has launched an initiative intended to help farmers access China's booming growth by forming a relationship with China's largest agricultural group. NAB has signed a memorandum of understanding with state-owned China National Agricultural Development Group Corporation, which has economic and trade ties with more than 80 countries and the equivalent of $2.6 billion in assets. Shares in NAB rose 1.8 per cent yesterday to close at $29.98.
Commodities
Gold is up $32.50 to $US1,280 an ounce for the August contract on Comex. Silver is up $0.79 to $19.96 for September. Copper is up $0.09 at $3.18 a pound. Oil is down $1.61 at US$104.91 a barrel for August light crude in New York.
