The local share market is expected to open higher this morning after receiving a positive lead from overseas markets, with Wall Street closing stronger on renewed economic optimism.
US stocks rallied on Friday, pushing the Dow briefly over 11,000 for the first time in 18 months.
Gains in energy stocks drove the market upward on the back of Chevron’s improved earnings outlook for the first quarter.
Data revealing US wholesale inventories rose more than expected in February also brightened prospects for first quarter economic growth. The Census Bureau reported wholesale inventories increased 0.6% in February after climbing 0.1% in January. They had been expected to rise 0.4%.
Investors also shrugged off concerns about Greece’s financial woes after a European Union source said policymakers had reached an agreement on terms of possible emergency loans for Athens.
The Dow Jones Industrial Average finished with a gain of 70 points to 10,997. The S&P500 Index added 8 points to 1,194 and the NASDAQ rose 17 points to 2,454.
European stock markets closed sharply higher on Friday, bouncing back amid reports that a resolution of the Greek debt crisis was near. London’s FTSE rose 58 points, Paris added 72 and Frankfurt gained 78 points.
Asian stocks were higher, Hong Kong’s Hang Seng is up 341 points, Tokyo’s Nikkei gained 36 points and China’s Shanghai Composite rose 27 points.
The Australian share market closed higher on Friday as takeover activity among coal stocks boosted the energy sector. The S&P/ASX 200 Index finished 10 points stronger to 4,948 and on the futures market the SPI200 is up 19 points. On to currencies: the Aussie Dollar at 8:40AM was buying 93.65 US cents, 60.72 Pence Sterling, 87.3 Yen and 68.77 Euro cents.
In local economic news, the ABS publishes housing finance data for the month of February and the RBA is set to release credit and debit card data for February also.
To company news around this morning: Shares in Rio Tinto Ltd (ASX:RIO) closed 0.66% lower on Friday at $79.47. The Australian Securities and Investments Commission says it is making routine inquiries in relation to the recent bribery conviction of former Rio employees in China. ASIC Chairman Tony D’Aloisio says the inquiries will determine whether the miner breached any Australian laws after the successful Chinese prosecution of former executive Stern Hu on bribery charges. However, he says that Rio does not appear to be at fault in any way. Rio Tinto recorded a $5.4 billion net profit in 2009.
Shares in Lihir Gold Ltd (ASX:LGL) closed 0.76% higher to $3.99 on Friday. The gold miner says Newcrest Mining Ltd is likely to be unsuccessful in its bid for the company unless it substantially increases its offer. Lihir Chairman Ross Garnaut says the $9.9 billion offer significantly undervalues the company.Newcrest Mining CEO Ian Smith says he believes the bid is a full and fair offer, but will go back to shareholders for their feedback. Newcrest is offering one of its shares for every nine Lihir shares plus 22.5 cents cash for each Lihir share. Lihir Gold posted a loss of nearly $261 million in 2009.
There are five companies going ex-dividend today: Among them are Harvey Norman with a fully franked 7 cent dividend and IDT Australia with a 1 cent fully franked dividend.
To commodities: The price of gold rose $8.90 to US$1,161.10 an ounce for the May contract on Comex. Silver gained 2 cents to US$18.34 for May and copper is steady at US$3.58 also for May.
And oil dropped 47 cents to US$84.92 a barrel for May light crude in New York.
