Following positive leads, the Australian market looks set to open higher. US stocks rose on the back of rising oil prices which led to gains in energy stocks.
US economic news
The chair of the Federal Reserve, Dr Janet Yellen, gave a speech yesterday which, according to analysts, indicates a June interest rate rise looks unlikely.
Dr Yellen said that Friday’s job figures were “disappointing”. However, she emphasised that there were other positive economic indicators (such as wage growth), and to not place so much reliance on one economic report.
Wall Street closed up: The Dow Jones Industrial Average gained 0.6 per cent to close at 17,920, the S&P 500 gained 0.5 per cent to close at 2,109 and the NASDAQ was up 0.5 per cent to close at 4,969.
European markets closed higher: London’s FTSE gained 1 per cent, Paris gained 0.04 per cent and Frankfurt was up 0.2 per cent.
Asian markets closed mixed: The Nikkei lost 0.4 per cent, the Hang Seng gained 0.4 per cent, and the Shanghai Composite lost 0.2 per cent.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 42 points up to finish at 5,360. On the futures market the SPI is up 15 points.
The Australian Dollar at 7:30AM was buying $US0.7366 cents, 51.02 Pence Sterling, 79.25 Yen and 64.87 Euro cents.
The Reserve Bank will meet today to discuss monetary policy, and it’s expected that they will maintain the cash rate at 1.75%.
Also out later today is the latest construction data from the Australian Industry Group.
West African Resources Ltd (ASX:WAF) has completed the final step of its $12.5 million capital raising with the issuing of 70.2 million new shares. The company says it will use the funds for an aggressive drilling program at its recent high grade gold discovery in the West African country of Burkina Faso.
Shares in West African Resources traded 9.68% higher yesterday at $0.17.
Mobile Embrace Limited (ASX:MBE) has completed its oversubscribed $12 million equity placement. The company says the funds will be used to fund continued international expansion of its Direct Carrier Billing Business.
Shares in Mobile Embrace traded 6.06% lower at $0.31 yesterday.
2 companies are going ex-dividend today. Dicker Data will pay a dividend of 3.85 cents fully franked, and Evolve Education Group will pay a dividend of 2.23 cents unfranked.
Gold has gained $4.80 to $US1,248 an ounce for the August contract on Comex.
Silver has gained $0.13 to $16.49 for July.
Copper is steady at $2.12 a pound.
Oil has gained $1.09 to $US49.71 a barrel for July light crude in New York.