* US stock markets pushed higher for a second session overnight, bouncing of its 200 day moving average.
* European stock markets snapped their 4-day losing streak overnight, on the back of improving US housing data, but caution persist ahead of the European Leaders Union summit that starts tonight.
* Asian stock markets were higher yesterday, as traders speculated that China may intigate further easing measures.
* Commodities prices generally higher, Gold prices are trading down around $US1,578 while crude-oil closed around $US80.
The Australian market is expected to trade higher today, as traders take their lead from overseas, as caution persists ahead of the European Leaders summit and at home traders clean out their portfolios for the new financial year. Markets eased in Europe and drifted higher in the US. The Australian dollar remains just above parity overnight.
The SPI Futures is trading around the key support level of 4000, ended up 0.2% (or 8 points) at 3,991. The key levels for our index today are 3950 to 4080.
See below for ASX listed companies in the news today.
Economics News Today
* May Job Vacancies.
U.S. Markets
US stock markets pushed higher for a second session overnight, bouncing of its 200 day moving average. The three major indexes were all up over 0.7% for the session. In the broader markets the energy stocks led the gains, followed by the financials and the mining sectors as fund managers prepared to rule off the quarter and first half year.
Trader sentiment was boosted by rising in oil prices as inventories came down frm 22 year highs and positive readings on the US housing sector. Investors remain cautious ahead of the EU summit, but increasingly nothing substantial is expected from this, plus to is also a ruling on Obama Care tonight.
In economic news pending home sales in May topped expectations to match the highest level of the year while there were strong earnings from homebuilder Lennar, which projected a slow and steady recovery in the housing market. Also positive was a report which showed US durable goods orders posted their first gain in three months in May, suggesting that the US manufacturing sector stabilised modestly after an early spring slowdown.
All ten company groups that make up the S&P index traded higher, except for consumer sectors, with Materials up 1.1%, Energy sector was up 2.1%, Financials sector up 1.1%, Industrials sector was up 0.2%, Health Care up 1.1%, Technology was up 0.6%, while Consumer Staples were down -0.2%.
The Dow Jones closed up 0.7% (or 92 points) at 12,627, the S&P 500 index up 0.9% (or 12 points) at 1,332, the Nasdaq ended up 0.8% (or 21 points) at 2,875 and the smaller cap Russell 2000 was up 1.5%.
European Markets
European stock markets snapped their 4-day losing streak overnight, on the back of improving US housing data, but caution persist ahead of the European Leaders Union summit that starts tonight.
The three major indexes rose over 1.3%, while Spain’s jumped 2.1% the Greek market edged 0.7% higher. The London FTSE rose on the back of positive retail data which showed a sharp rise in retail sales in June as a result of celebrations over the Diamond Jubilee weekend. The Stoxx Europe 600 index jumped 1.4%.
Across the region the banking stocks surged with the Stoxx 600 banks index jumping 2.5%, after after the Eurogroup finance ministers set out initial aid plans for Spain and Cyprus with their sovereign debt crisis. The Spanish government will remain fully liable for the EUR100 billion it requested to help boost its troubled banks while a financial rescue package for Cyprus will involve the European Union, the European Central Bank (ECB) and International Monetary Fund (IMF), and will be tied to strict conditions on fiscal policy, bank deleveraging and structural reforms.
In London the FTSE 100 index closed up 1.4% (or78 points) at 5,532, the German DAX was closed up 1.7% (or 92 points) at 6,229, while in France the CAC was closed up 1.7% (or 50 points) at 3,063, Spain closed up 2.1% and Italy closed up 2.6%. Greece up 0.7%.
Asian Markets
Asian stock markets were higher yesterday, as traders speculated that China may intigate further easing measures.
Across the region energy and financial sectors led the gains. The Hong Kong market up over 1%, outperformed due to speculation of closer financial ties to the Chinese mainland, Chinese companies whose Hong Kong-listed shares trade at a deep discount to their mainland-listed stock are set to benefit. However the Chinese Shanghai Composite was down again, while the Japanese market rose.
The Hong Kong-listed casino operators in Macau also recovered after heavy selling after a report that local officials were not aware of any plans by China to tighten visa restrictions for Chinese visitors to the gambling capital. This may help Crown today.
In China the SSE Composite was closed down -0.2% (or -5 points) at 2,217, while in Hong Kong the Hang Seng Index closed up 1.0% (or 195 points) at 19,177, and in Japan the Nikkei 225 Index was up 0.8% (or 66 points) at 8,730, South Korean KOSPI closed down -0.1% for the session, while the Indian market closed up 0.4%.
Commodities
The Dollar Index was lower at 82.55 on a higher Euro, while the Australian Dollar last traded higher at 1.0086. Commodities prices traded higher.
For the session the Benchmark crude NYMEX for August delivery was up 0.9% settled at $US80.21. Copper prices are looking for key support level as Copper for August delivery was up 1.1% (or 3.6 cents) at $US3.3565, while August Gold was up 0.2% (or $US3.40) at $US1,578.
AMP – AMP is expanding its presence in the rapidly-expanding self-managed superannuation industry with the acquisition of part of Australia’s largest SMSF administrator, Cavendish Group by buying two of Cavendish’s units in its SMSF Administration and Investment Portfolio Administration operation.
BHP – BHP Billiton has bought four exploration licences for areas in the Olympic Dam region in South Australia for $3 million.
BLD – Boral the building products maker, has cut its full year profit forecast for the second time within three months because of the impact of bad weather, delays to major resource sector and road projects and weaker property sales.
NWS – News Corp says it is considering a “restructuring” that would split off its larger entertainment division from struggling publishing businesses by splitting up the film and entertainment business from its newspaper and publishing business.
WBC – Westpac will pay $165 million in additional tax as a result of changes to the taxation of financial arrangements.
Corporate News
Ex-dividend Date
Aneka Tambang (ATM)
Market Summary
ASX – to open higher
US & UK/Europe – sharply higher
Commodities Stock Index up 1.7%
Gold Stocks Index down -0.2%
Oil Stocks Index up 2.1%
US ADRs – Broadly higher!!…
BHP up 0.7%, RIO up 0.1%; AWC down -0.9%
ANZ up 1.2% & NAB up 1.5%
NEM up 0.5%, JHX up 2.7%, NWS up 2.1%
By Michael Hevern
Head of Research
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Tags: Asian Markets, ASX, ASX News, Business News, Commodities, Crude Oil, European Markets, Ex Dividend, gold price, Nasdaq, Stock Market Analysis, stockmarket, trading, US Market wrap
