News: Outlook: Wall St records to lead ASX higher

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The Dow Jones Industrial Average leapt above 17,000 points overnights and the S&P 500 also closed at a record high. Such exuberance on Wall Street was spurred by US jobs figures coming in above expectations which points towards a welcome recovery in the world’s biggest economy. 

 

Gains are set to flow onto Australian markets today after a run of solid gains this week.

 

The European Central Bank has kept interest rates unchanged this month. Bank President Mario Draghi has said he won’t rule out quantitative easing as a method to spur growth should the low levels of inflation in Europe continue. 

 

Jobs data from the US suggests the economy added 288,000 new jobs in June, the figures from the Labor Department came in above last month’s figure of 224,000 and was above analysts expectations. The unemployment rate fell to 6.1 per cent last month, the lowest level since September 2008.

 

Global figures

Wall Street closed up yesterday: The Dow Jones Industrial Average gained 0.5 per cent to close at 17,068, the S&P 500 added 0.6 per cent to close at 1,985, and the NASDAQ added 0.6 per cent to close at 4,486.

 

European markets closed up: London’s FTSE gained 0.7 per cent, Paris gained 1 per cent and Frankfurt is also up 1 per cent.

 

Asian markets closed mixed: Tokyo’s Nikkei lost 0.1 per cent, Hong Kong’s Hang Seng lost 0.08 per cent, and China’s Shanghai Composite is up 0.2 per cent.

 

The Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 36 points up to finish at 5,491. On the futures market the SPI is 27 points up. 

 

Currencies

The Australian Dollar at 7:20AM was buying $US0.9349 cents, 54.52 Pence Sterling, 95.54 Yen and 68.71 Euro cents.

 

Company news

 

A merger between Roc Oil Company Limited (ASX:ROC) and Horizon Oil Limited (ASX:HZN) has progressed with agreement on a Merger Implementation Deed. The Federal Court of Australia ordered a meeting of Horizon Oil shareholders to consider the scheme. Under the proposal Horizon Oil shareholders will receive 0.724 new Roc shares for each Horizon fully paid share. Shares in Roc Oil closed 1.74 per cent up yesterday at $0.585

 

Iron ore miner Sherwin Iron Limited (ASX:SHD) has completed its fourth shipment of ore from its Roper River tenement. The company moved 74,075 tonnes out of Darwin Harbour yesterday which brings the total volume shipped for the bulk sample project to more than 272,000 tonnes. Sherwin Iron last traded at $0.042

 

Commodities

Gold is down $10.30 to $US1,321 an ounce for the August contract on Comex. Silver is down $0.17 to $21.09 for September. Copper is up $0.01 at $3.28 a pound. Oil is down $0.42 at US$104.06 a barrel for August light crude in New York.

 

Ex-dividends

Abacus Property Group (ASX:ABP) at $0.085c unfranked.