Outlook: Aus shares to continue rocketing

Market Reports

by David Chau

Yesterday’s strong start to the trading week looks set to continue today. Following very positive leads worldwide, the Aussie share market looks set to open higher this morning.

Wall Street finished stronger on Monday and, in particular, the S&P 500 closed at a record intraday high – surpassing its previous peak from May 2015. It also seems US investors are still feeling the positive sentiment from last week’s better-than-forecast jobs report.

In addition, there is a positive outlook in Asian markets. Japanese Prime Minister Shinzo Abe’s ruling coalition won the election on Sunday, which gives him a mandate to pass stimulus measures.

Also, the pound and British stocks rose yesterday after it was announced Theresa May will become the next British prime minister.

US economic news

The Fed has released its Labor Conditions Market Index for last month, which turned out to be better (or less negative) than expected. In June, the Index was at -1.9, compared with revised -3.6 in May.

Markets

Wall Street closed higher on Monday: The Dow Jones Industrial Average gained 0.4 per cent to close at 18,227, the S&P 500 gained 0.3 per cent to close at 2,137 and the NASDAQ gained 0.6 per cent to close at 4,989.

European markets finished higher: London’s FTSE was up 1.4 per cent, Paris was up 1.8 per cent and Frankfurt was up 2.1 per cent.

Asian markets closed higher: The Nikkei gained almost 4 per cent, the Hang Seng gained 1.5 per cent, and the Shanghai Composite was up 0.2 per cent.

The Australian share market closed higher yesterday: The ASX 200 closed 107 points up to finish at 5,337. On the futures market the SPI is up 26 points.

Currencies

The Australian Dollar at 7:30AM was buying $US75.34 cents, 58 Pence Sterling, 77.46 Yen and 68.15 Euro cents.

Economic news

Something to look out for later today is NAB’s Monthly Business Survey for June 2016.

Company news

Crane hire company, Boom Logistics Ltd (ASX:BOL), has secured credit approval for a new long-term finance package worth $57.5 million. Boom’s financing comes from several sources including ANZ, NAB and Assetsecure.

Shares in Boom Logistics closed 2.3% lower at 8.5 cents.

Finbar Group Ltd (ASX:FRI) is expecting its net profit after tax to be $8 million in the 2016 FY. Finbar says it finished the year with year-end presales of $451 million, which is the strongest level ever in the company’s history.

Shares in Finbar closed 1.84 per cent higher at 83 cents.

Commodities
Gold has fallen by $1.80 to $US1,357 an ounce for the August contract on Comex.
Silver has gained $0.20 to $20.30 for September.
Copper is up 3 cents at $2.15 a pound for September.
Oil is down $0.60 to $45.52 USD per barrel for August light crude in New York.

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