* US stock markets rallied for a third straight day, as investors bought in anticipation of more stimulus.
* European stock markets rose for the third day, again finishing at 4-month highs overnight. The Stoxx Europe 600 index rose 1.7%.
* Asian stock markets closed higher yesterday, on hopes the ECB action.
* Commodities prices lower, Gold prices are trading around $US1,612 while crude-oil closed up around $US93.50.
The Aussie market closed yesterday, at a three-month high on the back of improved investor sentiment towards the resources sector. The RBA left interest rates on hold as expected, and now investors will look to the unemployment figures later this week .
The Australian market looks set to open higher after positive leads from the US and European on optimism that central banks may act to stimulate their respective economies. Reporting today: Rio Tinto, Computershare, Stockland and AVJennings are due to post results today. Presenting at the Diggers and Dealers Conference today include: Fortescue, Atlas Iron, Newcrest, Troy Resource, Western Areas, Northern Star
The SPI Futures is trading above the key support level of 4180, ended up 0.5% (or 19 points) at 4268. The key levels for our index today are 4240 to 4300.
See below for ASX listed companies in the news today.
Economics News Today
* * July ABS Housing Finance Figures.
US Markets
US stock markets rallied for a third straight day, as investors bought in anticipation of more stimulus from the Federal Reserve and the European Central Bank .
The three benchmark indexes were up over 0.5%, with the tech-heavy Nasdaq again leading the way up 0.9%, and these indexes are now approaching 4-year highs. Broadly the Industrials sector led the gains but Materials, Finance and Energy sectors were all up over 0.6% for the session.
Traders hit the “Buy” button after news that the head of the Boston Fed for the US Federal Reserve had said that the US central bank should launch an open-ended bond-buying program. Commodities were well supported again.
All ten company groups that make up the S&P index traded higher, with Materials up 0.5%, Energy sector up 0.6%, Financials sector up 0.4%, Industrials sector was up 1.3%, Health Care up 0.5%, Technology was up 0.7%, while Consumer Staples were up 0.2%.
The Dow Jones closed up 0.4% (or 51 points) at 13,169, the S&P 500 index up 0.2% (or 3 points) at 1,394, the Nasdaq ended up 0.9% (or 26 points) at 3,016 and the smaller cap Russell 2000 was up 0.8%.
European Markets
European stock markets rose for the third day, again finishing at 4-month highs overnight. The Stoxx Europe 600 index rose 1.7%.
Across the region the Energy, Industrials, Materials and Consumer Cyclical sector were all up over 1.5% for the session. Investor sentiment was boosted due to better-than-expected corporate results and hopes of more stimulus, as expectations that policy makers will take action to address the eurozone debt crisis by bringing down borrowing costs for Spain and Italy.
In London’ the FTSE 100 index rose 0.6%, led by the Energy sect up 2.3%, while Materials and Consumer Cyclicals up around 1.5%. The major news the selling in Standard Chartered bank shares down another -16% as the British bank is alleged to have schemed with Iran to launder $US240 billion from 2001 to 2007, leaving the US financial system “vulnerable to terrorism” according to US regulators.
The markets in Germany and France continued higher, while the Spanish and Italian markets added over 2.2% again.
In London the FTSE 100 index closed up 0.6% (or 32 points) at 5,841, the German DAX was closed up 0.7% (or 50 points) at 6,967, while in France the CAC closed up 1.5% (or 52 points) at 3,453 and Spain closed up another 2.2%..
Asian Markets
Asian stock markets closed higher yesterday, on hopes the ECB will start a bond buying program sooner rather than later.
Benchmark indexes all rose, as in China the market was up for a third day as three stocks rose for every one that fell. The Chinese market is attempting to find support around current levels, ahead of some key economic data to be released later this week.
In China the SSE Composite closed up 0.1% (or 3 points) at 2,158, while in Hong Kong the Hang Seng Index closed up 0.4% (or 74 points) at 20,073, and in Japan the Nikkei 225 Index was up 0.9% (or 77 points) at 8,803 South Korean KOSPI closed up 0.1% for the session, while the Indian market closed up 1.1%.
Commodities
The Dollar Index was higher at 82.29 on a lower Euro, while the Australian Dollar last traded lower at 1.0559. Commodities prices traded higher.
For the session the Benchmark crude NYMEX for August delivery was up 1.4% settled at $US93.45. Copper prices are looking for key support level as Copper for August delivery was up 1.2% at $US3.4295, while August Gold was down -0.1% (or -$US1.30) at $US1,615.
ASX News Today
ANN – Ansell the glove and condom maker, has bought French glove maker Comasec for $118 million, expanding its presence in Europe and north America.
BKN – Bradken the industrial equipment maker says full year profit has grown by 49 percent due to growing demand from resource sectors across the world.
COH – Cochlear the hearing device maker, says full year profit has fallen -68 percent due to the costs of a recall of one of its bionic ear implants.
IGR – CEO of takeover target Integra Mining says a multi-million dollar deal with WA gold miner Silver Lake Resources should be finalised by the end of the year.
LEI – Leighton Holdings the global construction company, has announced a net profit after tax of $115 million for the six months to June 2012 and still expects it to reach $400 million to $450 million for the year. The report showed gearing popped above 48% (up from 44%), while net profit came in at the lower end of its guidance.
TCL – Transurban the toll road operator, says full year net profit dropped 50 percent due to a drop in value of one of its roads in the United States.
WPL – Traditional owners in favour of Woodside Petroleum’s Browse gas hub say a $1.5 billion compensation deal will save lives and that they do not want former Greens leader Bob Brown speaking for them.
WHC – Whitehaven Coal is restructuring its management team to handle future growth. The coal miner has received a takeover proposal from Tinkler Group which is seeking funding for the deal.
Corporate News
Reporting today:
Coffey (COF)
Computershare (CPU)
Rio Tinto (RIO)
Stockland (SGP)
Teranga Gold Corp.
Ex-dividend Date
None
Market Summary
ASX – to open higher
US & UK/Europe – higher
Commodities Stock Index up 1.7%
Gold Stocks Index up 0.9%
Oil Stocks Index up 1.5%
US ADRs – Broadly higher!!…
BHP up 0.3%, RIO up 0.6%; AWC down -0.3%
ANZ down -0.2% & NAB up 0.6%
NEM up 1.1%, JHX up 0.1%, NWS up 1.0%
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
