News: Outlook: ASX looks to lift on Wall St records

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The Australian share market looks to lift into the session after Wall Street jumped into the second half with fresh records. The Dow and S&P 500 surged to record closing highs while the Nasdaq rallied more than 1 per cent ahead of key US monthly jobs data due on Thursday. Investors absorbed manufacturing data overnight which came in better than expected for the UK and China, steady for the US and below expectations for Europe. The Australian dollar hit $US0.95 in overnight trade for the first time since November, the iron ore price has firmed and the gold price is higher. 

 

Global markets

 

Wall Street rallied to records on Tuesday: The Dow Jones Industrial Average gained 0.8 per cent to close at 16,956, the S&P 500 gained 0.7 per cent to close at 1,973 and the Nasdaq gained more than 1 per cent to close at 4,459.

 

European markets started July higher on Tuesday: London's FTSE 100 rose 0.9 per cent, France's CAC 40 rose 0.9 per cent and Germany's DAX rose 0.7 per cent.

 

Asian markets closed mixed on Tuesday: Japan’s Nikkei jumped 1 per cent, Hong Kong’s Hang Seng dipped 0.1 per cent, and China’s Shanghai Composite added 0.1 per cent.

 

The Australian share market started the new 2015 financial year in the red after the Reserve Bank of Australia (RBA) kept the official cash rate on hold: The S&P/ASX 200 index lost 20 points on Tuesday to finish at 5,376. On the futures market the SPI is pointing 20 points higher. 

 

Currencies

 

Chinese data and the RBA’s rate call boosted the Australian dollar overnight and at 7:20am the Aussie was buying $US0.9496, 55.39 Pence Sterling, 96.43 Yen and 69.44 Euro cents.

 

Economic news due out today 

 

Australian Bureau of Statistics: International trade in goods and services for May

Company news 

 

Tatts Group Limited (ASX:TTS) has been told it must pay a health benefit levy of $42.6 million in respect of its Victorian gaming operations over fiscal 2013. The lottery and gaming company says the Court of Appeal has upheld the Victorian Treasurer’s decision, setting aside the previous decision of the Supreme Court. Tatts says it is now reviewing the judgement and considering its options. Shares in Tatts Group rose 3.06 per cent yesterday to close at $3.37 ahead of the announcement. 

 

Mining services operator Sedgman Limited (ASX:SDM) has invested into minerals explorer Vital Metals Limited (ASX:VML). Sedgman will provide Vital with $500,000 which will enable the company to finish the definitive feasibility study (DFS) on the Watershed Tungsten Project in Queensland. Vital says the investment is a strong vote of confidence in its flagship project, where Sedgman is currently completing the engineering work for the DFS. Shares in Sedgman rose 2 per cent yesterday to close at $0.51 ahead of the announcement. 

 

Ex-dividends 

 

Collins Foods Limited (ASX:CKF) paying a 6 cent fully franked dividend

GrainCorp Limited (ASX:GNC) paying a 15 cent fully franked dividend

Programmed Maintenance Services Limited (ASX:PRG) paying an 11 cent fully franked dividend

Commodities 

 

Gold has gained $4.60 to $US1,326.60 an ounce for the August contract on Comex. 

Silver has lifted $0.06 to $21.07 for September. 

Copper is steady at $3.20 a pound. 

Oil has dipped $0.03 to $US105.34 a barrel for August light crude in New York.