Shares extend gains with strong start
June 21 (AAP) The Australian share market has resumed its winning run as investors eye and China's announcement that it will let its currency strengthen. The Australian dollar has already risen on the Chinese move.
In early trade, the benchmark S&P/ASX200 index rose 64.6 points, or 1.4 per cent, to 4638.7 and the All Ordinaries gained 63.4 points, or 1.4 per cent, to 4637.5.
''Clearly gold is being used as a historical hedge against inflation and of recent times, it’s a hedge against volatility,'' Mr Boubouras said.
In major corporate news this morning, the search goes on for and other passengers on board a plane which crashed on a flight between Cameroon and Congo. Those missing include mining magnate and other executives from iron ore miner Sundance Resources.
The Chinese central bank announced that it would to the US dollar one week before the Group of 20 summit in a move that will defuse tensions at the summit and shift the spotlight back onto Europe's sovereign debt issues, CommSec chief economist Craig James said.
The Australian dollar gained on the news, rising in recent trading to 88.1 US cents, 59.3 pence, 70.9 euro cents and 79.7 yen.
US stocks rose for a fourth straight day on Friday, led by shares of minerals companies after gold prices settled at another record high.
Gold settled at a record high for a second consecutive day.
That lifted shares of mining companies like Barrick Gold and Newmont Mining.
The Dow Jones Industrial Average closed up 16.47 points, or 0.16 per cent, at 10,450.64 points.
The Standard & Poor's 500 index closed up 1.47 points, or 0.13 per cent, at 1,117.51 points.
The Nasdaq composite index closed up 2.64 points, or 0.11 per cent, at 2,309.80 points.
Gold for August delivery rose $US9.60 to settle at $US1,258.30 an ounce, a record close, after earlier rising to $US1263 an ounce.
Silver for July delivery rose 40.8 US cents to settle at $US19.184 an ounce, while July copper settled down 2.15 US cents at $US2.884 a pound.
Oil prices ended higher on Friday, supported by a weak US dollar and on the back of expectations that the global economic recovery would not falter.In addition, prices were supported by a surprise drop in US petrol inventories that suggested strengthening energy demand.
"Mogi" Munkhdul Badral
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