Aust shares tipped ot open 1% higherFrom: AAP July 29, 2012 12:43PM (www.news.com.au)
AUSTRALIAN stocks are expected to open strongly on Monday following hefty gains on global markets.
US and European stocks surged on signs that European leaders are mustering an all-out assault on the eurozone debt crisis.
The Dow Jones Industrial Average on Friday was up 190.45 points, or 1.48 per cent, at 13,078.38 in closing trade, breaching the 13,000 closing level for the first time since early May.
It came as the leaders of Germany and France added their weight to the battle to preserve the European single currency, issuing a joint statement promising to do everything they could to stop the 17-country bloc from breaking up.
AMP head of investment and strategy Shane Oliver said the overseas moves had led the ASX 200 futures index 47 points higher. "As a result of further gains in US and European shares, ASX 200 futures rose another 1.1 per cent, pointing to a solid opening for the Australian share market on Monday," Mr Oliver said.
In economics news this week, new homes sales and building approvals figures will be released on Tuesday. Market watchers are expecting home sales to remain soft and a sharp fall in building approvals.
The market is also expecting a fall in June quarter house prices and a soft retail sales result for June when official figures are released on Wednesday. At the close on Friday, the benchmark S&P/ASX200 index was up 62.1 points, or 1.5 per cent, at 4,209.8, while the broader All Ordinaries index was up 60.6 points, or 1.45 per cent, at 4,234.4.
