Outlook: Aus shares set to follow US optimism

Market Reports

US markets lifted overnight following positive housing data, the optimism should flow onto Australian markets this morning with yesterday’s bumper production figures from China also set to support local prices. 
 
Attention to today will focus on the Spotless IPO when it hits the market; the offer was heavily oversubscribed and is the biggest listing of the year so far. 
 
Global figures

Wall Street closed up yesterday: The Dow Jones Industrial Average lost/gained 10 points to close at 16,543, the S&P 500 added 4 points to close at 1,892 and the NASDAQ gained 23 points to close at 4,154.
 
European markets closed mixed: London’s FTSE lost a little under half a point, Paris gained 9 points and Frankfurt gained 23 points.
 
Asian markets closed mixed: Tokyo’s Nikkei added 296 points, Hong Kong’s Hang Seng added 117 points, and China’s Shanghai Composite lost 4 points.
 
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 55 points up to finish at 5,480. On the futures market the SPI is 11 points up. 
 
Currencies

The Australian Dollar at 7:20AM was buying $US0.9229 cents, 54.72 Pence Sterling, 93.89 Yen and 67.6 Euro cents.
 
Company news
 
David Jones Limited (ASX:DJS) has received a valuation of up to $4.14 per share by an independent expert that supports a proposed buyout of the retailer, by Woolworths SA. Independent expert Grant Samuels has deemed the acquisition fair and reasonable and assessed the retailer’s full underlying value at between $3.73 and $4.14. The statement says the offer from Woolworths SA of $4.00 per share represents a substantial premium over the existing share price. David Jones closed 0.25 per cent lower yesterday at $3.94.  
 
Insurance Australia Group Limited (ASX:IAG) is driving efficiency with a new operating model. The insurance company will focus on a division between personal and commercial insurance, with both being supported by a new enterprise operations division. The company’s aim is to leverage its scale and insurance expertise while staying flexible to customers’ needs. Shares in IAG closed 0.17 per cent up yesterday on the news to close at $5.79  
 
Commodities

Gold is up $6.90 to $US1,295 an ounce for the June contract on Comex.
Silver is up $0.18 to $19.52 for July.
Copper is up $0.02 at $3.14 a pound.
Oil is down $0.33 at US$103.74 a barrel for July light crude in New York.

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