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Monday, July 26, 2010

[cpsnewswire] [ASX Morning Update & Overnight Markets, Monday, July 26, 2010]

Stocks set to rise after offshore gains

 

July 26 (AAP) The Australian stock market is expected to open higher after gains on Wall Street on Friday.

 

When the Sydney Futures Exchange last traded on Saturday morning, the September share price index contract was up 40 points at 4476 points, on volume of 3136 contracts. On Friday, the major indices each rose almost 2 per cent.

 

What you need to know:

 

·         The SPI was 40 points higher at 4476

·         The Australian dollar was buying 89.6 US cents

·         In the US, the S&P500 rose 8.99 points to 1102.66

·         In Europe, the FTSE 100 fell 1.19 points to 5312.62

·         Gold fell $US7.80 an ounce to $US1187.80

·         Oil fell 32 US cents a barrel to $US78.98

·         Stocks to watch: possible market movers

 

What's out today

 

In economics news, the Australian Bureau of Statistics releases producer price indices for June.

Although the positive sentiment is expected the buoy the S&P/ASX200 Index, Mr McCarthy noted that in recent days Australian shares had gained on positive US and European news only to fall away later in the day.

 

“That indicates to me the day-traders are quite positive and active but the longer term investors, big investors and funds are possibly on the sidelines,” he said.

Offshore

 

US stocks extended gains on Friday in cautious trading as Wall Street digested results of stress tests on European banks as well as quarterly earnings of American companies.

 

The Dow Jones Industrial Average climbed 102.32 points, or 0.99 per cent, to settle at 10,424.62 after a gain of nearly two per cent, or 200 points, a day earlier on better-than-expected earnings of key US companies.

 

The tech-rich Nasdaq composite index rose 23.58 points, or 1.05 per cent, to 2269.47 and the broader S&P 500 index added 8.99 points, or 0.82 per cent, at 1102.66.

London's FTSE 100 index of leading shares was virtually unchanged at 5312.62 points, falling 1.19 points.

The German DAX was up 24.19 points, or 0.39 per cent, at 6166.34 points.

The French CAC 40 index added 6.48 points, or 0.18 per cent, to 3607.05 points.

How we fared Friday

 

The sharemarket closed higher following a surge on Wall Street driven by strong US corporate earnings.

 

The benchmark S&P/ASX200 index was up 83.7 points, or 1.91 per cent, at 4458.4 points, while the broader All Ordinaries index added 80.3 points, or 1.83 per cent, to 4475.1 points.

Commodities

 

Oil prices dipped on Friday as worries eased about potential damage to Gulf Coast oil operations from Tropical Storm Bonnie.

 

Benchmark crude fell 32 US cents to settle at $US78.98 a barrel on the New York Mercantile Exchange. Oil picked up about $US2 a barrel since Monday.

September gold fell $US7.80 to settle at $US1187.80 a fine ounce on the Comex division of the New York Mercantile Exchange.

 

September silver fell 1.9 US cents to settle at $18.101 per ounce.

 

Copper for September delivery settled 2.05 US cents higher at $US3.185 per pound.

 

Link to article

 

 

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"Mogi" Munkhdul Badral

CPS International

Email: mogi@cpsinternational.mn

Mobile: +976-99996779

 

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based ASX Licensed Financial Services Company. To trade ASX stocks, feel free to contact me at mogi@cpsinternational.mn or +976-9999-6779.

 

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