Strong sentiment: shares set to jump
July 14 (AAP) The Australian share market is set for a strong opening after Wall Street and European markets surged on encouraging corporate earnings reports in the US.
This morning on the Sydney Futures Exchange, the September share price index contract was 72 points higher at 4431. That marks an about-face from yesterday's poor showing, which saw both major indices drop about two-thirds of a percentage point.
What you need to know:
· The SPI was 72 points higher at 4431
· The Australian dollar was buying 88.34 US cents
· In the US, the S&P500 rose 16.59 points to 1095.34
· In Europe, the FTSE 100 rose 104 points to 5271.02
· Gold rose $US14.80 an ounce to $US1213.50
· Crude oil was up $US2.20 a barrel at $US77.15
· The Reuters Jefferies CRB index rose 1.36%
What's out today
In economic news, Treasurer Wayne Swan will release revised economic forecasts, and Treasury secretary Ken Henry is scheduled to address a Committee for Economic Development of Australia luncheon in Melbourne with a speech entitled, Challenges and Priorities for Australia.
Westpac and the Melbourne Institute release their joint survey of consumer sentiment for July.
The Department of Education, Employment and Workplace Relations releases its vacancy report, based on a survey of skilled job vacancies advertised in July.
How we fared yesterday
Australian shares closed weaker as resource stocks slumped due to worries about iron ore prices and demand from China.
The benchmark S&P/ASX200 index ended down 29.6 points, or 0.67 per cent, at 4380.3 points, while the broader All Ordinaries index also fell 0.67 per cent, or 29.5 points, to 4400 points.
Wall Street got a shot of confidence from the start of second-quarter earnings season, with better-than-expected profits from aluminum maker Alcoa and railroad operator CSX.
The Dow Jones Industrial Average rose 146.75 points, or 1.44 per cent, to settle at 10,363.02. The Standard & Poor's 500 index gained 16.59 points, or 1.54 per cent, to 1095.34, while the Nasdaq composite index added 43.67 points, or 1.99 per cent, to 2242.03.
European stock markets overcame negative economic and financial news and bounded higher on prospects for better-than-expected US corporate results.
European stocks surged despite news that Moody's had downgraded Portugal's sovereign debt rating, sparking fresh concerns about the eurozone.
In London the FTSE 100 index added 104 points, or 2.01 per cent, to close at 5271.02 points.
Germany's DAX gained 113.94 points, or 1.87 per cent, to 6191.13 points and the French CAC 40 gained 70.1 points, or 1.96 per cent, to 3637.76 points.
World oil prices rebounded strongly as the US dollar weakened and demand for the commodity was projected to increase.
New York's main contract, light sweet crude for delivery in August, jumped $US2.20 to $US77.15 a barrel, its highest level since June 28.
Among other metals, copper for September delivery rose by 0.85 cent to $US3.0175 a pound. Gold for August delivery climbed $US14.80 to $US1213.50 an ounce.
AAP, with BusinessDay
"Mogi" Munkhdul Badral
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