US stocks rallied on Tuesday, on hopes a US China trade tariff deal will be met after US President Donald Trump is set to meet with Xi Jinping, at the upcoming G-20 summit. Wall Street sentiment was also buoyed on hopes the American central bank will ease monetary policy later this year. The Fed is now in the midst of its two day meeting.
Overnight, we saw the iron ore price rally, hitting a fresh high of US$112
The local share market is eyeing a gain of 0.6 per cent or 39 points according to the SPI futures.
The Australian share market closed at a fresh high of 6,570 points yesterday with S&P/ASX 200 index gaining 39 points higher or 0.6 per cent.
Overseas economic news
In the US, we learnt US homebuilding unexpectedly fell in May, with housing starts dropping 0.9 per cent to a seasonally adjusted annual rate of 1.269 million units, according to Commerce Department. The fall comes on the back of a drop in the construction of single-family housing units.
While on Tuesday in China, the nation learnt home prices rose 0.7 per cent in May. That’s the fastest growth in five months according to the National Bureau of Statistics (NBS). On an annual basis home prices increased 10.7 per cent in May, unchanged from April’s growth rate.
Wall Street closed higher on Tuesday: The Dow Jones Industrial Average gained 1.4 per cent to 26,466, the S&P 500 added almost 1 per cent to close at 2,918 and the NASDAQ closed 1.4 per cent higher at 7,954
European markets closed higher: London’s FTSE gained 1.2 per cent, Paris added 2.2 per cent and Frankfurt rose over 2 per cent.
Asian markets closed mixed: Tokyo’s Nikkei fell 0.7 per cent, Hong Kong’s Hang Seng was up 1 per cent and China’s Shanghai Composite added 0.1 per cent.
Xenith IP (ASX:XIP) directors are now unanimously recommending shareholders vote on IPH’s (ASX:IPH) takeover which values Xenith shares at $2.15. That’s a 73 premium to Xenith’s closing price on 26 November 2018 ($1.245 per share), and of the day prior’s the announcement of the former transaction with QANTM Intellectual Property Limited (ASX:QIP). Xenith shareholders will cast their votes on the takeover on 25 July. And if the transaction is approved the deal will be implemented on Thursday 15 August 2019. Shares in IPH (ASX:IPH) closed 0.4 per cent higher at $7.16 yesterday.
Xenith IP (ASX:XIP) shares closed 2.3 per cent lower at $2.11
Venus Metals Corporation Limited (ASX:VMC) is paying 5.4 cents unfranked
One Australian Dollar at 7:30 AM was buying 68.77 US cents, 54.77 Pence Sterling, 74.59 Yen and 61.43 Euro cents.
Iron Ore price gained 3.8 per cent to $112.28
Iron Ore futures suggest a 5.2 per cent gain.
Gold has added $7.20 to US$1350 an ounce.
Silver was up $0.16 to US$14.99 an ounce.
Oil gained $2.13 to US$54.30 a barrel.