The Australian share market is likely to tip the 5000-mark again today, after US stocks set fresh records after good news on jobs and day two of Federal Reserve Chairman Ben Bernanke’s testimony.
Mr Bernanke returned to Capitol Hill in Washington, where he told lawmakers that the Fed has made no decision on whether the central bank will trim its $US85 billion-per-month stimulus program in September.
US economic news
US jobless claims data showed that initial claims for benefits last week dropped 24,000 to 334,000. That was better than analyst predictions of 340,000 claims.
Figures
Wall Street soared: The Dow Jones Industrial Average jumped 78 points to close at 15,549, the S&P 500 added 8 points to close at 1,689 and the NASDAQ gained 1 point to close at 3,611.
European markets also pushed higher: London’s FTSE surged 62 points, Paris added 56 points and Frankfurt lifted by 82 points.
Asian markets were mixed: Tokyo’s Nikkei gained 193 points, but Hong Kong’s Hang Seng lost 27 points, and China’s Shanghai Composite fell 22 points.
The Australian share market pulled back from a strong start to yesterday’s session, ending just 0.2 per cent higher. The S&P/ASX 200 index finished the session 12 points higher at 4,993.
On the futures market the SPI is 20 points up.
Currencies
The Australian dollar has rallied in early trade, recovering from a fall sparked by comments from the Chinese finance minister who said China was unlikely to receive a massive stimulus this year. At 7:20AM the Aussie was buying $US91.7 cents, 60.24 Pence Sterling, 92.13 Yen and 69.96 Euro cents.
Company news
Santos Limited
(ASX:STO) will join the throng of resource sector companies reporting this week. It’s scheduled to release its second quarter activities report today. The report comes after Santos had two major gas discoveries this week off Western Australia. Shares in Santos lifted 2.3 per cent yesterday to close at $14.26.
Billabong International Limited
(ASX:BBG) has officially rejected a rival bid from its financiers. Earlier this week, Billabong entered into a deal with Altamont Capital Partners that will allow it to repay its existing debt facilities immediately. Billabong says the rival proposal was received, but only after it had entered into agreement with Altamont. Shares in Billabong surged 8.96 per cent yesterday to close at 36.5 cents.
Commodities
Gold is up $6.70 to $US1,284 an ounce for the August contract on Comex. Gold prices have risen over 5 per cent in the past week – the biggest weekly gain since 2011. Silver is down $0.03 to $19.39 for September. Copper is flat at $3.13 a pound. The price of oil has shot to a 16-month high on signs the US job market is improving. Oil soared $1.56 to US$108 a barrel for August light crude in New York.
