The Australian share market is set for a positive start, after US stocks rallied overnight for a third straight session, as investors grow confident global central banks will provide further stimulus.
US economic news
The Federal Reserve has released consumer credit figures for June which shows total outstanding debt increased by $6.5 billion for the month, coming in lower than expected. Economists had expected a rise of $10 billion.
Wall Street closed up yesterday: The Dow Jones Industrial Average gained 51 points to close at 13,169 , the S&P500 added 7 points to close at 1,401 and the Nasdaq was up by 26 points to close at 3,016.
European markets closed up: London’s FTSE added 32 points, Paris gained 52 and Frankfurt added 49 points.
Asian markets closed up: Hong Kong’s Hang Seng added 74 points, Tokyo’s Nikkei added 77 and China’s Shanghai Composite gained 3 points.
The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 19 points up to finish at 4,292. On the futures market the SPI is 21 points higher.
The Australian Dollar at 7:15AM was buying $US1.056, 67.6 Pence Sterling, 82.98 Yen and 85.16 Euro cents.
Due out today from the Australian Bureau of Statistics is housing finance for June, with a rise in demand for new home loans expected.
SP AusNet (ASX:SPN)
shares dropped more than 4 per cent yesterday as it fights a class action in the Supreme Court of Victoria relating to a fire in Murrindindi in 2009 that took 40 people's lives. The electricity provider says it rejects any assertion of negligence. Council for the plaintiffs believe the fire was caused by a power line that broke and that was too close to an earth stay wire. Shares in SP AusNet closed 4.76 per cent lower yesterday at $1.00.
has again managed to increase its stake in Alesco Corporation Limited (ASX:ALS)
to about 41 per cent. Argo Investments Limited (ASX:ARG)
has tendered all of its shares in the building products maker which is about a 2.4 per cent interest in the company. Alesco remains opposed to the takeover offer. Shares in DuluxGroup closed 1.22 per cent lower yesterday at $3.24.
There are no companies going ex-dividend today.
Tomorrow: AMCIL Limited (ASX:AMH)
and Norton Gold Fields Limited (ASX:NGF)
Gold is down $3.40 to $US1,613 an ounce for the December contract on Comex.
Silver is up $0.22 to $28.09 for September.
Copper is up $0.05 at $3.44 a pound.
Oil is at two-month highs, up $1.47 at US$93.67 a barrel for September light crude in New York.