Outlook: Record US highs to help local market edge higher

Market Reports

by Jessica Ellerm

Following positive leads, the Australian share market looks set to open higher. US equities posted another solid session on Friday, with the S&P 500 closing at an all-time high. With economic data and earnings generally positive, some analysts believe the chances of a Fed rate hike are firming. However oversupply fears continue to weigh on the oil price, mainly driven by reports of an increase in the number of rigs in operation. 
US economic news

The U.S. Manufacturing PMI came in at 52.9 for July. It is the highest reading since October last year and exceeded market expectations of 51.6 for the month.

Wall Street closed up on Friday: The Dow Jones Industrial Average gained 0.3 per cent to close at 18,571, the S&P 500 added 0.5 per cent to close at 2,175 and the NASDAQ rose 0.5 per cent to close at 5,100.
European markets closed mixed: London’s FTSE added 0.5 per cent, Paris gained 0.1 per cent and Frankfurt fell 0.1 per cent.
Asian markets closed lower: Tokyo’s Nikkei dropped 1.1 per cent, Hong Kong’s Hang Seng fell 0.2 per cent, and China’s Shanghai Composite lost 0.9 per cent.
The Australian share market closed lower on Friday: The S&P/ASX 200 Index closed 14 points down to finish at 5,498. The local market was up 69 points on the week. On the futures market the SPI is 4 points up. 

The Australian Dollar at 7:20AM was buying $US74.64 cents, 56.88 Pence Sterling, 79.21 Yen and 68.03 Euro cents.
Company News
Galaxy Resources Limited (ASX:GXY) has announced it has received acceptances for its off-market takeover bid for General Mining Corporation. If the takeover is completed, Galaxy will hold a 74.3 percent stake in General Mining.
Shares in Galaxy Resources Limited closed 1.12 per cent lower on Friday at $0.440.  
WPP Aunz Limited (ASX:WPP) subsidiary Ikon Communications has filed legal action against Advangen International, a subsidiary of ASX listed life sciences company Cellmid Limited (ASX:CDY). Ikon’s claim against Advangen is close to $1 million, and relates to a dispute regarding unpaid invoices for services rendered during an advertising campaign. Advangen has announced it intends to defend its position and launch a cross claim against Ikon. 
Shares in WPP Aunz Limited closed 0.90 per cent up on Friday at $1.12. 
1 company is going ex-dividend today. Mirrabooka Investments will pay 11.5 cents fully franked.

Gold has lost $8.80 to $US1,330 an ounce for the August contract on Comex.
Silver has dropped $0.13 to $19.69 for September.
Copper is steady at $2.24 a pound for September.
Oil has fallen $0.41 to $US44.26 a barrel for August light crude in New York.