Dollar higher on stock market gains

Australian Money Source: Supplied

THE Australian dollar is trading higher, helped along by positive sentiment from equities markets.

At 12pm AEST today, the currency was trading at 103.49 US cents, up from 103.24 US cents yesterday afternoon.

It reached a high of 103.60 US cents early this morning, its highest level since April 19.

Commonwealth Bank currency strategist Joseph Capurso said the Australian dollar had benefited from gains on stock markets and a rise in commodity prices.

"It's mainly due to offshore developments, there were gains on equity markets and a lift in the base metal prices."

Mr Capurso said trade in the local currency was likely to remain quiet during today's afternoon session.

Meanwhile, Australian bond futures prices were higher at noon. At 12pm AEST today, the June 10-year bond futures contract was trading at 96.915 (implying a yield of 3.085 per cent), up from 96.900 (3.100 per cent) yesterday afternoon. The June three-year bond futures contract was at 97.460 (2.540 per cent) up from 97.440 (2.560 per cent) previously.

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A week of gains for Australian market

The Australian share market has opened slightly higher, boosted by stronger mining stocks on the back of improved prices for commodities.

"It's all about commodities today," IG Markets market strategist Stan Shamu said.

"We've seen a nice little jump in the materials names: BHP, Rio, Newcrest."

Mr Shamu said resources stocks had bounced after looking like they had been a little oversold.

The commodities sector was also catching up to the rally in commodity prices, after the Australian market was closed on Thursday for the Anzac Day holiday.

The rest of the market was mixed, and without the stronger mining stocks, the bourse would probably be trading lower.

At 1022 AEST, global miner BHP Billiton was $1.02, or 3.22 per cent, higher at $32.72; Rio Tinto was up $1.85, or 3.38 per cent, at $56.53.

Gold miner Newcrest had surged $1.12, or 6.8 per cent, to $17.58.

Among the major banks, National Australia Bank was 11 cents lower at $32.65, ANZ had eased two cents to $29.88 and Commonwealth Bank had lost 83 cents to $70.87, but Westpac had gained 12.l5 cents to $32.625.

Among other stocks, Agribusiness GrainCorp was in a trading halt after it agreed to a $3.02 billion takeover bid by suitor Archer Daniels Midland Company. GrainCorp last traded at $11.87.

Sleep disorder equipment supplier ResMed was seven cents lower at $4.43, despite posting record revenue and income for the March quarter.

On Wall Street, the Dow Jones Industrial Average on Thursday added 24.50 points, or 0.17 per cent, to 14,700.80 points after improved jobless claims data and a mixed bag of corporate earnings.

New claims for US unemployment benefits fell last week to the lowest level since mid-March. Initial claims came in at 339,000, down from the prior week's revised reading of 362,000.

At 1010 AEST on Friday, the benchmark S&P/ASX200 index was up 14.9 points, or 0.29 per cent, at 5,117.3, while the broader All Ordinaries index was up 15.00 points, or also 0.29 per cent, at 5,099.2.

However, on the ASX 24, the June share price index futures contract was down six points at 5,109, with 7,200 contracts traded.

Earlier:

At 0630 AEST on Friday, the June share price index futures contract was up 12 points at 5,127.

In economic news on Friday, the Reserve Bank of Australia is due to release March financial aggregates figures.

In equities news, ResMed is expected to post third quarter results.

In Australia, the market on Wednesday, its last trading day due to the Anzac Day public holiday, closed about 1.5 per cent higher as low inflation figures raised investors' expectations of an interest rate cut.

Australia's consumer price index (CPI), the key measure of inflation, rose 0.4 per cent in the first three months of 2013, below expectations for a rise of 0.7 per cent.

The benchmark S&P/ASX200 index was up 86.2 points, or 1.72 per cent, at 5,102.4 points, while the broader All Ordinaries index was up 81.6 points, or 1.63 per cent, to 5,084.2 points.

AAP cdh

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A week of gains for Australian market

THE Australian share market was led higher by resources stocks at noon, marking a week of unbroken gains.

Miners and energy stocks were up about three per cent as they caught up on offshore gains made in commodities prices after a holiday from trading on Anzac Day on Thursday.

"Given it was just an okay result offshore last night I think we're actually performing pretty well this morning," RBS Morgans private client adviser Bill Bishop told AAP.

"It's a good demonstration of the underlying strength of the Australian economy even though we give ourselves such a bad time in the papers ... three per cent GDP growth and under two per cent inflation is okay."

At 1220 AEST, global miner BHP Billiton was 92 cents, or 2.9 per cent, higher at $32.62 and Rio Tinto was up $1.35, or 2.5 per cent, at $56.03.

Gold miner Newcrest had lifted 83.5 cents, or 5.1 per cent, to $17.295 as it tried to regain its heavy losses in recent weeks amid a sliding gold price.

Among the major banks, National Australia Bank was two cents up at $32.78, ANZ had put on 16 cents to $30.06 and Westpac had gained 20 cents to $32.670 but Commonwealth Bank had given up 64 cents to $71.06.

Retailers were putting a brake on the bourse, with Woolworths 30 cents down at $36.51 and Harvey Norman 9.5 cents, or 3.2 per cent, weaker at $2.885.

Among other stocks, agribusiness GrainCorp was up 96 cents, or 8.1 per cent, to $12.83 as it considers a $3 billion-plus takeover bid by suitor Archer Daniels Midland Company.

Sleep disorder equipment supplier ResMed was 5.5 cents lower at $4.445, despite posting record revenue and income for the March quarter.

Earlier:

"It's all about commodities today," IG Markets market strategist Stan Shamu said.

"We've seen a nice little jump in the materials names: BHP, Rio, Newcrest."

Mr Shamu said resources stocks had bounced after looking like they had been a little oversold.

The commodities sector was also catching up to the rally in commodity prices, after the Australian market was closed on Thursday for the Anzac Day holiday.

The rest of the market was mixed, and without the stronger mining stocks, the bourse would probably be trading lower.

At 1022 AEST, global miner BHP Billiton was $1.02, or 3.22 per cent, higher at $32.72; Rio Tinto was up $1.85, or 3.38 per cent, at $56.53.

Gold miner Newcrest had surged $1.12, or 6.8 per cent, to $17.58.

Among the major banks, National Australia Bank was 11 cents lower at $32.65, ANZ had eased two cents to $29.88 and Commonwealth Bank had lost 83 cents to $70.87, but Westpac had gained 12.l5 cents to $32.625.

Among other stocks, Agribusiness GrainCorp was in a trading halt after it agreed to a $3.02 billion takeover bid by suitor Archer Daniels Midland Company. GrainCorp last traded at $11.87.

Sleep disorder equipment supplier ResMed was seven cents lower at $4.43, despite posting record revenue and income for the March quarter.

On Wall Street, the Dow Jones Industrial Average on Thursday added 24.50 points, or 0.17 per cent, to 14,700.80 points after improved jobless claims data and a mixed bag of corporate earnings.

New claims for US unemployment benefits fell last week to the lowest level since mid-March. Initial claims came in at 339,000, down from the prior week's revised reading of 362,000.

At 1010 AEST on Friday, the benchmark S&P/ASX200 index was up 14.9 points, or 0.29 per cent, at 5,117.3, while the broader All Ordinaries index was up 15.00 points, or also 0.29 per cent, at 5,099.2.

However, on the ASX 24, the June share price index futures contract was down six points at 5,109, with 7,200 contracts traded.

At 0630 AEST on Friday, the June share price index futures contract was up 12 points at 5,127.

In economic news on Friday, the Reserve Bank of Australia is due to release March financial aggregates figures.

In equities news, ResMed is expected to post third quarter results.

In Australia, the market on Wednesday, its last trading day due to the Anzac Day public holiday, closed about 1.5 per cent higher as low inflation figures raised investors' expectations of an interest rate cut.

Australia's consumer price index (CPI), the key measure of inflation, rose 0.4 per cent in the first three months of 2013, below expectations for a rise of 0.7 per cent.

The benchmark S&P/ASX200 index was up 86.2 points, or 1.72 per cent, at 5,102.4 points, while the broader All Ordinaries index was up 81.6 points, or 1.63 per cent, to 5,084.2 points.

AAP cdh

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European stocks extend gains

EUROPE'S main stock markets have extended gains on growing expectations of an interest rate cut by the ECB following poor German economic data.

After sharply rising the day before, London's FTSE 100 index of leading companies closed 0.40 per cent higher to stand at 6431.76 points, while Frankfurt's DAX 30 climbed 1.32 per cent to 7759.21 points and Paris' CAC 40 jumped 1.58 per cent to 3842.94 points.

In foreign exchange trade, the euro dipped to $US1.2995 ($1.27) from $US1.2997 overnight in New York. The US dollar which again neared the 100 yen level in early trading, stabilised back to 99.36 yen compared to 99.48 yesterday.

On the London Bullion Market, gold climbed to $US1428.50 an ounce from $US1408 overnight.

"Following yesterday's weak PMI (private sector economic) data we have had a poor German Ifo survey, further reinforcing market speculation of a rate cut from the ECB," said CMC Markets trader Nick Dale-Lace.

German business confidence took a tumble this month, according to data today, supporting speculation of a possible interest rate cut by the European Central Bank, analysts said.

The Ifo economic institute's closely watched business climate index fell to 104.4 points in April from 106.7 points in March.

That was a bigger drop than expected: analysts had been pencilling in only a very slight decrease this month to 106.2 points.

Gekko Markets trader Anita Paluch said that "bad numbers may be conducive enough for ECB to take some action and provide more liquidity in the light of those economic headwinds".

European stocks markets had closed sharply higher yesterday, with Paris up 3.5 per cent, on growing speculation of a rate cut from the ECB.

Market watchers were today also poring over a batch of mixed company earnings data. Volkswagen shares rose 2.59 per cent to 150.70 euros, even though Europe's biggest carmaker said its net profit skidded sharply lower in the first three months of the current year as a result of the "difficult market environment".

Traders said the share price was higher owing to the company sticking to its full-year target of increasing profit.

In London, Barclays dropped 1.26 per cent to 294.55 pence, erasing earlier gains, as the British bank said it had returned a net profit in the first quarter after suffering a loss after tax one year earlier.

France Telecom meanwhile advanced 2.73 per cent to 8.01 euros after the company said it was banking on high-speed internet services to boost sales after reporting a substantial drop in first quarter earnings owing to stiff competition.

US stocks meanwhile were mixed today, with trade tempered by Apple's fall in profits and a poor read on durable goods orders in March.

In midday trade, the Dow Jones Industrial Average was down 0.17 per cent, the broad-based S&P 500 added 0.03 per cent, while the tech-rich Nasdaq Composite Index lost 0.15 per cent.

Asian stock markets rose on bargain-buying on Wednesday and following a rally overnight on Wall Street according to traders, with Tokyo enjoying a healthy bump as the US dollar tries to break through the 100 yen barrier for the first time in four years.

Investors took their lead from New York, which jumped on Tuesday on the back of upbeat earnings results from some corporate giants, while they seemed to brush off more weak manufacturing figures from China and Europe.

Tokyo closed up 2.32 per cent, Seoul won 0.87 per cent and Sydney climbed 1.72 per cent.

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European stocks extend gains

EUROPE'S main stock markets have extended gains on growing expectations of an interest rate cut by the ECB following poor German economic data.

After sharply rising the day before, London's FTSE 100 index of leading companies closed 0.40 per cent higher to stand at 6431.76 points, while Frankfurt's DAX 30 climbed 1.32 per cent to 7759.21 points and Paris' CAC 40 jumped 1.58 per cent to 3842.94 points.

In foreign exchange trade, the euro dipped to $US1.2995 ($1.27) from $US1.2997 overnight in New York. The US dollar which again neared the 100 yen level in early trading, stabilised back to 99.36 yen compared to 99.48 yesterday.

On the London Bullion Market, gold climbed to $US1428.50 an ounce from $US1408 overnight.

"Following yesterday's weak PMI (private sector economic) data we have had a poor German Ifo survey, further reinforcing market speculation of a rate cut from the ECB," said CMC Markets trader Nick Dale-Lace.

German business confidence took a tumble this month, according to data today, supporting speculation of a possible interest rate cut by the European Central Bank, analysts said.

The Ifo economic institute's closely watched business climate index fell to 104.4 points in April from 106.7 points in March.

That was a bigger drop than expected: analysts had been pencilling in only a very slight decrease this month to 106.2 points.

Gekko Markets trader Anita Paluch said that "bad numbers may be conducive enough for ECB to take some action and provide more liquidity in the light of those economic headwinds".

European stocks markets had closed sharply higher yesterday, with Paris up 3.5 per cent, on growing speculation of a rate cut from the ECB.

Market watchers were today also poring over a batch of mixed company earnings data. Volkswagen shares rose 2.59 per cent to 150.70 euros, even though Europe's biggest carmaker said its net profit skidded sharply lower in the first three months of the current year as a result of the "difficult market environment".

Traders said the share price was higher owing to the company sticking to its full-year target of increasing profit.

In London, Barclays dropped 1.26 per cent to 294.55 pence, erasing earlier gains, as the British bank said it had returned a net profit in the first quarter after suffering a loss after tax one year earlier.

France Telecom meanwhile advanced 2.73 per cent to 8.01 euros after the company said it was banking on high-speed internet services to boost sales after reporting a substantial drop in first quarter earnings owing to stiff competition.

US stocks meanwhile were mixed today, with trade tempered by Apple's fall in profits and a poor read on durable goods orders in March.

In midday trade, the Dow Jones Industrial Average was down 0.17 per cent, the broad-based S&P 500 added 0.03 per cent, while the tech-rich Nasdaq Composite Index lost 0.15 per cent.

Asian stock markets rose on bargain-buying on Wednesday and following a rally overnight on Wall Street according to traders, with Tokyo enjoying a healthy bump as the US dollar tries to break through the 100 yen barrier for the first time in four years.

Investors took their lead from New York, which jumped on Tuesday on the back of upbeat earnings results from some corporate giants, while they seemed to brush off more weak manufacturing figures from China and Europe.

Tokyo closed up 2.32 per cent, Seoul won 0.87 per cent and Sydney climbed 1.72 per cent.

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Dollar gains against euro

THE Australian dollar soared against the euro in overnight trading as the crisis in Cyprus prompted large scale selling of the European currency.

While the Australian gained about 1.5 per cent against the euro, the local currency was little changed against the US dollar.

"The Aussie dollar was largely sidelined overnight with all eyes on the euro, which has essentially collapsed in offshore trade," Bank of New Zealand currency strategist Mike Jones said. "For the most part, investors have taken the view that this is a very Europe-centric crisis and it won't derail the broader global recovery and impact on demand for commodities."

At 7am AEDT today, the Australian dollar was trading at 104.64 US cents, little changed from yesterday's local close of 104.55 US cents. By contrast, the local unit was at 81.39 euro cents, up sharply from 80.21 euro cents yesterday.

The euro was also well down against the Japanese yen and US dollar, as initial optimism over the Cyprus bank bailout plan gave way to concerns about what it could mean for other European economies.

"The early optimism over the Cyprus deal has largely evaporated and investors are now worried about contagion and the precedent the deposit tax in Cyprus sets for the rest of Europe," Mr Jones said. "That has taken a fair old gouge out of the euro."

"By contrast, the Aussie has been a picture of calm."

To secure the 10 billion euro bailout, Cyprus agreed to major reforms of its banking sector. The Mediterranean island's biggest bank, the Bank of Cyprus, will be restructured and the second-largest lender, Laiki, will be effectively shut down. Deposits of less than 100,000 will be spared, however, those holding deposits of more than 100,000 euros will face a "haircut" of up to 30 per cent.

In economics news today, Reserve Bank of Australia governor Glenn Stevens is due to speak at the Australian Securities and Investments Commission annual forum in Sydney.

Mr Jones said he expected the performance of equity markets to offer direction for the Australian dollar during the local trading day.

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Australian shares post gains by noon

Cypriot fixation hit markets again overnight, but the US market is making a great recovery.

THE Australian share market was higher at noon as traders decided they had over-reacted to Europe's debt problems yesterday and recovered some of their losses.

Offshore markets in Europe and US posted losses overnight but to a far smaller degree than the 2.05 per cent ASX drop that represented the heaviest one-day fall for the year.

The fears related to Mediterranean island Cyprus proposing to impose a deposit tax as part of bailout plans that raised worries there would be a run on banks and the idea would spread to other countries.

CMC Markets chief market analyst Ric Spooner said with the benefit of hindsight the market had overshot.

"It's not really a robust bounce I don't think, we're certainly still well below where we were Friday," Mr Spooner said. "That reflects the fact that there is ongoing risk, particularly the next hurdle which will be the vote by Cypriot parliament on whether to approve these measures."

The gains in Australia were broad-based with all sectors up apart from defensive healthcare stocks.

Among the big miners BHP Billiton was 29 cents up to $34.98 and Rio Tinto had gained 25 cents to $59.80. Fortescue was the strongest performer among the top 50 companies, having shot up 13 cents, or 3.3 per cent, to $4.02 after being punished in recent weeks.

The banks were also higher, with National Australia Bank up 46 cents to $30.95, Westpac improving 37 cents to $30.34, Commonwealth adding 90 cents to $70.12 and ANZ is 21 cents higher at at $28.29.

KEY FACTS * At 12.04pm AEDT today, the benchmark S&P/ASX200 index was 37.5 points, or 0.75 per cent, up at 5052.9.

* The broader All Ordinaries index was 37.9 points, or 0.75 per cent, stronger at 5065.3.

* The March share price index futures contract was 48 points better at 5054, with 116,871 contracts traded.

* National turnover was 856.5 million securities worth $1.44 billion.

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Australian shares post gains by noon

Cypriot fixation hit markets again overnight, but the US market is making a great recovery.

THE Australian share market has opened higher amid views that investors over-reacted to Europe's debt problems with heavy sell-offs on Monday.

Yesterday's falls in Australia were the heaviest of the year (above two per cent) but a relatively muted response in Europe to Cyprus' plans for a deposit tax suggested fears of that idea spreading to Italy and Spain were wrong.

IG Markets market strategist Evan Lucas said Australia and the Asian region had posted heavy falls yesterday in response to the Europe and US doing so on Friday. Now there appeared to be "contrarian buying" as investors deciding some good quality stocks looked too cheap.

"There was a quite a hard hit on Australian banks yesterday, Westpac was down 3.24 per cent despite having absolutely no peripheral exposure to the euro zone," he said. "The miners: BHP, Rio and FMG (Fortescue Metals Group) are off 10, 12 and 17 per cent respectively since February highs to levels where a lot of support comes in."

Among the big miners BHP Billiton was 86 cents 19 cents up to $34.88, Rio Tinto had gained 35.5 cents to $59.905 and Fortescue was 10 cents, or 2.6 per cent, better at $4.00 after being punished in recent weeks.

The banks were also higher, with National Australia Bank up 28 cents to $30.77, Westpac improving 22 cents to $30.19, Commonwealth adding 49 cents to $69.71 and ANZ 15 cents higher at at $28.33.

KEY FACTS

* At 10.40am AEDT today, the benchmark S&P/ASX200 index was 26.3 points, or 0.52 per cent, up at 5041.7.

* The broader All Ordinaries index was 25 points, or 0.5 per cent, stronger at 5052.4.

* The March share price index futures contract was 33 points better at 5039, with 57,774 contracts traded.

* National turnover was 510.05 million securities worth $604.87 million.

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