Australian Stock Market Report – Midday July 2, 2014
By Steven Daghlian, CommSec Market Analyst | July 2, 2014 2:49 PM EST
The Australian sharemarket is improving for the first time in three days, with fresh record highs in the U.S. and a firmer iron ore price helping. The All Ordinaries Index (XAO) is 0.9 per cent higher, making it the best day for local shares in a fortnight.
A train hauling carriages filled with iron ore is seen on the outskirts of Port Hedland in the Pilbara region of Western Australia in this December 3, 2013 file photo. If Australian miners are worried about the dramatic decline in iron ore prices, it doesn't show. At an annual gathering of many of the world's biggest and smallest iron ore producers here the mood is upbeat - as if the heftiest one-day fall in ore prices since the global financial crisis never happened. REUTERS/David Gray/Files
All sectors are higher, with the miners, industrials and consumer staples the strongest movers. The iron ore price rose by 0.4 per cent overnight to US$94 per tonne, which is helping lift the miners by as much as 1.7 per cent at lunch. Expectations over the next year for ore prices (Australia's leading export) are only for a slight improvement on average from here.
The financial industry, which is the biggest sector on the local market, is surging by 1.1 per cent. National Australia Bank (NAB) is up 1.7 per cent, leading the other majors higher.
The defensives are rising by not as impressively as the broader market. Telstra (TLS) is up 0.77 per cent while the healthcare industry is 0.8 per cent.
On the economic front, Australia recorded a worse than forecasts $1.9 billion trade deficit in May. Over the month, exports fell by 5 per cent while imports eased by just 1 per cent. A $780 million deficit was posted in April. The Australian dollar fell following the numbers and currently buys US94.5c. Better than expected Chinese manufacturing numbers on Tuesday helped lift the Aussie to a seven-month high overnight.
Tonight, a report on private sector jobs will be in focus at 10.15pm (AEST) in the form of an ADP employment report. Just over 200,000 jobs are expected to have been added in June.
Looking ahead, Thursday will be the busiest of the week locally with no fewer than four reports/events in focus. A monthly read on the number of building approvals granted to developers by councils, retail spending statistics, a speech by a Reserve Bank official and two economic reports out of China will be key. Arguably the most important piece of data will be released on Thursday night in the U.S. The monthly non-farm payrolls report (data on U.S. employment) is likely to set the tone for local stocks on Friday. The market expects the
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- South Australia OKs $800M Copper, Gold & Iron Ore Mine on Prime Agri Land in Yorke Peninsula
- Australian Stock Market Report –Midday July 30, 2014
- Shanghai Stock Exchange Will Not Extend Trading Hours
- Long Beach Real Estate Market Is Pricing Out Home Buyers with Limited Budget
- Australian Stock Market Report –Afternoon July 30, 2014
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- Twin Malaysia Airlines MH370, MH17 Aviation Disasters Create Phobia Among Travellers