Shares poised to gain as investors eye new PM
June 24 (BusinessDay.com.au) Australian shares are poised for modest early gains on a day when investors are likely to focus on politics, with Prime Minister Kevin Rudd replaced by his deputy Julia Gillard.
In recent trading on the futures market, the SPI 200 index was up 8 points at 4481 points. The benchmark ASX 200 share index yesterday fell sharply for a second day, losing lost 72.2 points, or 1.6 per cent, to 4486.1 points.
, meanwhile, ended mixed as and the US Federal Reserve indicated interest rates will need to remain at to stoke economic growth.
Shares of Melbourne-based BHP and London-based Rio Tinto rose after the leadership vote was announced. BHP climbed 2.1 per cent in New York overnight to $US69.61, the highest price in US trading since May 10. Rio Tinto rallied 2.3 per cent to $US51.05
US stocks closed mixed overnight after the Federal Reserve indicated that problems in Europe pose a threat to the US economy and that it would keep interest rates low.
The Dow Jones industrial average settled up 4.92 points, or 0.05 per cent, at 10,298.44. The Standard & Poor's 500 index was down 3.27 points, or 0.3 per cent, at 1,092.04.
The Nasdaq composite index was down 7.57, or 0.33 per cent, at 2,254.23.
In London, the FTSE 100 index shed 1.30 per cent, or 68.46 points, to close at 5,178.52 points.
In Germany, the DAX gave up 64.52 points, or 1.03 per cent, to 6,204.52 points, while the CAC 40 in Paris fell 63.53 points, or 1.71 per cent, to 3,641.79.
Oil prices dropped on Wednesday after the US government reported that crude supplies unexpectedly grew last week and remain well above typical levels.
Benchmark crude for August delivery fell $US1.50 to settle at $US76.35 on the New York Mercantile Exchange.
On the metals front, precious metals and copper fell in overnight trading on the Comex division of the NY Mercantile exchange. August gold fell $US6 to $US1,234.80.
July silver lost 44.3 US cents $US18.459, and July copper was 5.65 US cents lower at $US2.9355.
"Mogi" Munkhdul Badral
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