Outlook: S&P 500 record run to buoy ASX

Market Reports

The Australian share market is eyeing a slightly higher start after the S&P 500 hit yet another record closing high on Wall Street. Despite the record US indexes ended broadly unchanged an investors absorbed more earnings reports and deal rumours. 
 
Economic releases overnight have supported sentiment with the euro zone’s private sector expanding and US initial jobless claims falling to an eight year low. The figures came after China data showed yesterday manufacturing activity beat expectations and accelerated to an 18-month high this month.
 
Elsewhere the the International Monetary Fund (IMF) has cut its 2014 global economic growth forecast to 3.4 per cent from 3.6 per cent. Looking ahead the IMF has upgraded its 2015 forecast to 4 per cent from 3.9 per cent. 
 
Global markets
 
Wall Street put in a soft performance on Thursday: The Dow Jones Industrial Average dipped 0.02 per cent to close at 17,084, the S&P 500 firmed 0.05 per cent to close at 1,988 and the Nasdaq slipped 0.04 per cent to close at 4,472.
 
European markets rose on Thursday: London's FTSE 100 gained 0.3 per cent, France's CAC 40 gained 0.8 per cent and Germany's DAX gained 0.4 per cent.
 
Asian markets closed mixed on Thursday: Japan’s Nikkei fell 0.3 per cent, Hong Kong’s Hang Seng added 0.7 per cent, and China’s Shanghai Composite jumped 1.3 per cent.
 
The Australian share market closed 0.2 per cent higher yesterday after China’s better than expected factory data: The S&P/ASX 200 index added 11 points on Thursday to close at 5,588. On the futures market the SPI is 8 points higher. 
 
Currencies 
 
The Australian dollar at 7:30am was buying $US0.9415, 55.44 Pence Sterling, 95.87 Yen and 69.95 Euro cents.
 
Company news  
 
Paladin Energy Limited (ASX:PDN) jumped to yesterday’s best performer in the benchmark index after announcing key developments at its flagship Langer Heinrich uranium mining operation in Namibia. The uranium miner has now settled the $US190 million sale of a 25 per cent joint venture equity stake in the project to a Chinese nuclear utility. Paladin has also announced the successful refinancing of the Langer Heinrich project finance facility to further strengthen its financial position. The company was the benchmark index’s worst performer over the last financial year with its stock sinking more than 60 per cent. Shares in Paladin Energy advanced 4.11 per cent to close at $0.38 following the announcements on Thursday. 
 
Shares in Silex Systems Limited (ASX:SLX) plunged almost 40 per cent after the technology firm provided an update on its SILEX Uranium Enrichment Technology licensing agreement. The company says its licensee for the technology, Global Laser Enrichment, has announced changes to the funding and pace of the commercialisation program. Silex says Global Laser Enrichment’s announcement was unexpected but made to align with current adverse market conditions. CEO and Managing Director Michael Goldsworthy believes the SILEX Technology remains the company’s key asset and stands by Silex’s recently announced restructure. Shares in Silex Systems plunged 39.36 per cent to close at $0.57 following the announcement on Thursday. 
 
Commodities 
 
Gold has dropped $13.90 to $US1,291 an ounce for the August contract on Comex. 
Silver has fallen $0.58 to $20.41 for September. 
Copper has added $0.06 to $3.27 a pound. 
Oil has slipped $1.05 to $US102.07 a barrel for September light crude in New York.

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