Outlook: ASX set to rally on Greek relief

Market Reports

The Australian share market looks set to rally after global markets rose in relief to a new bailout deal for Greece. EU and Greek leaders struck an agreement early this morning which must be voted through the parliament no later than Wednesday. The Australian dollar has declined in response and held just over $US0.74 while the price of iron ore is steady, buying just under $US50 per tonne. 
 
Global markets
 
Wall Street rallied into the new week: The Dow Jones Industrial Average climbed 1.2 per cent to close at 17,978, the S&P 500 jumped 1.1 per cent to close at near 2,100 and the Nasdaq gained 1.5 per cent to close at 5,071.
 
European markets moved higher on Monday: London's FTSE 100 rose almost 1 per cent, France's CAC 40 advanced 1.9 per cent and Germany's DAX increased 1.5 per cent.
 
Asian markets saw strong gains on Monday: Japan’s Nikkei surged 1.6 per cent, Hong Kong’s Hang Seng climbed 1.3 per cent, and China’s Shanghai Composite soared 2.4 per cent.
 
The Australian share market retreated from highs to end 0.3 per cent lower on Monday: The S&P/ASX 200 index finished 19 points lower at 5,473. On the futures market the SPI is 91 points stronger. 
 
Currencies 
 
The Australian dollar at 7:30am was buying $US0.7405, 47.85 Pence Sterling, 91.41 Yen and 67.31 Euro cents.
 
Economic news due out today
 
National Australia Bank Limited (ASX:NAB): Business survey for June
 
Company news
 
Growthpoint Properties Australia Limited (ASX:GOZ) has acquired a multi-tenanted industrial property in South Australia for $20.8 million. The property group says the asset is located in Beverley which is an established industrial precinct about six kilometres from Adelaide’s CBD. Shares in Growthpoint Properties Australia ended steady at $3.16 on Monday after the announcement was made.  
 
BPS Technology Limited (ASX:BPS) has entered into a strategic partnership with RSPCA Queensland to generate an extra cash stream for the animal welfare group. Under the deal RSPCA will promote BPS’ bucqi app to its supporters and receive a percentage of the fees generated off every transaction. Shares in BPS Technology fell 3.13 per cent to close at $0.775 on Monday before the announcement was made. 
 
Commodities 
 
Gold has declined $2.50 to $US1,155 an ounce for the August contract on Comex. 
Silver has eased $0.01 to $15.47 for September. 
Copper has added $0.01 to $2.54 a pound. 
Oil has fallen $0.51 to $US52.71 a barrel for August light crude in New York.




Thank you for watching the Australian Share Market Outlook on Tuesday 14 July. I’m Lelde Smits for the Finance News Network.